Rigel Pharmaceuticals reported second-quarter net revenues of $67 million, rising 14% year-over-year from $58.9 million, at the 12th Annual Cantor Fitzgerald Global Healthcare Conference on September 10, 2026. The company also disclosed updated full-year guidance and detailed the economics behind the recent launch of VEPPANU (vepdegestrant), its first PROTAC-based oncology therapy.
Total net product sales reached $55.3 million, while collaboration and contract revenues totaled $11.7 million. Pre-tax profit came in at $24 million, with after-tax profit at $17 million. Cash and cash equivalents stood at $95 million at the end of the quarter. The company noted it has now achieved eight consecutive quarters of profitability.
Rigel updated its 2024 outlook, projecting total net revenues excluding VEPPANU of $285 million to $295 million, with net product sales of $255 million to $265 million and contract revenues of approximately $30 million. The stock had gained roughly 66% over the prior six months, trading at a market capitalization of $872 million with a price-to-earnings ratio of 2.84. Analyst price targets ranged from $43 to $85.
VEPPANU, approved for metastatic breast cancer, was acquired via a transaction that closed in mid-June 2024 and became available to patients within 60 days. The deal carried a $70 million upfront payment, funded from Rigel’s cash position, with an additional $15 million in near-term milestones expected over coming quarters. Regulatory milestones could add up to $60 million, while commercial milestones may reach $260 million. Royalties are set in the mid-teens to mid-20s percentage range. Rigel also committed up to $40 million over four years to fund combination, hepatic and related studies.
Cantor Fitzgerald CFO Dean Schorno highlighted that VEPPANU is the first and only FDA-approved PROTAC therapy, noting its catalytic mechanism differs from oral SERDs and other treatments. "What's unique about VEPPANU is that the molecule is then released after degradation and can attract other estrogen receptors and continue this catalytic process," Schorno said.
The addressable patient population for VEPPANU was estimated at more than $1 billion in market value. Of approximately 170,000 metastatic breast cancer patients, roughly 70% have ER-positive, HER2-negative disease, about 40% carry ESR1 mutations, and an estimated 60% of those are identified and treated. The second- and third-line target segment comprises around 20,000 patients.
On its pipeline, Rigel provided an update on R289, an investigational therapy for lower-risk myelodysplastic syndrome. The dose-expansion cohort is enrolling more than 20 patients across once-daily and twice-daily groups, with emphasis on the 500 mg once-daily cohort and above. Six of 18 patients in that group responded, yielding a 33% response rate among patients who had received an average of three prior therapies. Hypomethylating agents typically work in 18% to 20% of patients, while luspatercept and imetelstat achieve responses in 38% to 40%, leaving approximately 60% non-responsive. The lower-risk MDS target market encompasses about 12,200 patients with a combined treatment opportunity exceeding $2 billion. Updated dose-expansion data for R289 is expected by the end of 2024.
Schorno noted that Rigel’s prior transactions with REZLIDHIA and GAVRETO were rapidly accretive, and the company expects similarly strong economics from VEPPANU. The company also referenced partnerships and collaborations involving Grifols, Kissei, Medison, Knight Therapeutics, Dr. Reddy’s and Arvinas, alongside clinical trial sites including MD Anderson and the CONNECT Consortium.
