Rigel Pharmaceuticals, Inc. (Nasdaq:RIGL) today announced plans to exit early-stage research and focus resources on its mid to late-stage development programs and its commercial efforts. The strategy will strengthen Rigel's ability to build value for shareholders by executing on the company's near-term value drivers: growing ITP sales, expanding the addressable market for TAVALISSE® (fostamatinib) with warm autoimmune hemolytic anemia (wAIHA) and COVID-19, advancing its wholly-owned IRAK1/4 program in hematology and immunology, and exploring other opportunities that will complement Rigel's hematology/oncology-focused commercial offerings.
"I want to thank the Rigel research team who discovered the pipeline of novel molecules, which includes TAVALISSE, the first and only SYK inhibitor approved for ITP and now in Phase 3 development for patients suffering from warm autoimmune hemolytic anemia and COVID-19, as well as molecules targeting IRAK1/4 and RIP1 for heme-onc and immune diseases," said Raul Rodriguez, president and chief executive officer of Rigel. "We look forward to advancing these programs through the clinic and delivering these medicines to patients and the physicians who treat them."
Rigel will reduce its workforce by 16%, resulting in the elimination of 31 positions, primarily in the research organization. As a result of the workforce reduction, Rigel expects that it will recognize in the fourth quarter of 2021 a one-time severance-related charge, which will consist of cash severance and non-cash expense related to option modifications. Rigel estimates that the cash-related charge will be approximately $3.3 million. Rigel also plans to modify certain equity grants to the affected employees, the cost of which is still being determined. This measure is expected to provide reduced operating expenses ranging from $11-$15 million annually starting in 2022, inclusive of potential future facility cost savings.
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