Why Rigel Pharmaceuticals (RIGL) Stock Is Declining Today

NEW YORK (TheStreet) -- Rigel Pharmaceuticals (RIGL) shares are down -13.1% to $2.68 on Wednesday after the company announced that it was halting the testing of its dry eye disease drug treatment, R348, after failed mid-level studies.

The company said that it intends to begin another mid-stage test of the drug in patients with dry eye syndrome at a later time.

TheStreet Ratings team rates RIGEL PHARMACEUTICALS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

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"We rate RIGEL PHARMACEUTICALS INC (RIGL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

RIGL Chart RIGL data by YCharts

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