This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rigel Falls on Drug-Deal Delays, Layoffs

Shares of Rigel> (RIGL - Get Report) fell Tuesday after the small drug maker announced plans to cut its workforce and delay partnership plans for a key rheumatoid arthritis drug until more data can be collected.

Rigel, based in South San Francisco, said it was eliminating 36 jobs, or about 20% of the company's workforce, in order to preserve cash and re-focus on its most important clinical development programs.

The company also said efforts to seek a partner for R788, an experimental pill for rheumatoid arthritis, would be put on hold until ongoing phase IIb studies are completed in July and August.

"We have decided that postponing the partnership for R788, pending the forthcoming clinical trial results, will better position us to secure an optimal partnership arrangement for R788," said James Gower, Rigel's chairman and CEO, in a statement.

Rigel shares fell 9.3% to close at $6.50.

Last October, Rigel shares dipped when data from a phase IIa study of R788 in rheumatoid arthritis patients revealed some safety concerns as well as geographic disparities that, overall, raised the risk profile of the drug. At that time, some analysts questioned whether Rigel would be forced to delay a promised partnership deal for the drug until more data could be collected.

There's been excitement over R788 because it is one of the few experimental rheumatoid arthritis drugs in development that can be taken by patients in a convenient pill form. All current treatments for the disease require patients to take injections. Incyte> (INCY - Get Report) and Pfizer> (PFE - Get Report), are also working on oral drugs for rheumatoid arthritis.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INCY $71.80 -0.75%
PFE $32.61 -0.91%
RIGL $2.79 -3.10%
AAPL $93.63 -1.30%
FB $116.29 -0.38%


Chart of I:DJI
DOW 17,701.80 -128.96 -0.72%
S&P 500 2,056.01 -19.80 -0.95%
NASDAQ 4,752.9060 -52.3850 -1.09%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs