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Rigel (RIGL) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 4, 2026

Source: earnings call transcript

Executive summary

Rigel Q2 FY26 — Vepinu In-License and Strong Commercial Performance Drive Growth

Rigel Pharmaceuticals delivered a strong second quarter, marked by robust commercial growth across its existing portfolio and the strategic in-licensing of Vepinu, a novel PROTAC for metastatic breast cancer, which is expected to be a significant growth driver. The company also advanced its R289 pipeline asset, demonstrating promising early efficacy in lower-risk MDS. Management remains focused on successful Vepinu launch, pipeline progression, and maintaining financial discipline while targeting full-year profitability.

Highlights

5

  • Achieved $67 million in U.S. net product sales, a 14% increase year-over-year.

  • Tavalise net product sales reached a record $47.4 million, up 27% compared to the prior year period.

  • Successfully in-licensed Vepinu, an FDA-approved PROTAC for ER+, HER2-, ESR1-mutated metastatic breast cancer, on track for mid-August commercial availability.

  • Raised and narrowed full-year 2026 total revenue guidance to $285 million to $295 million, and reaffirmed positive net income expectation.

  • R289 Phase 1b study showed 33% of evaluable patients achieved red blood cell transfusion independence (RBCTI) for 8+ weeks in lower-risk MDS.

Concerns

3

  • Net income for Q2 FY26 was $17.3 million, a significant decrease from $59.6 million in Q2 FY25, primarily due to a $40 million non-cash revenue from a prior collaboration in Q2 FY25.

  • Cash, cash equivalents, and short-term investments decreased to $95.3 million from $155 million at the end of 2025, largely due to the $70 million upfront payment for the Vepinu in-license.

  • Gavretto net product sales experienced a modest decline year-over-year.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Total Revenues
$285 million to $295 million
high materiality
High
Full-year 2026 Net Product Sales (excluding Vepinu)
$255 million to $265 million
high materiality
High
Full-year 2026 Contract Revenues
approximately $30 million
medium materiality
High
Full-year 2026 Net Income
positive net income
high materiality
High
Vepinu Commercial Availability
mid-August
high materiality
High
R289 Phase 1b Dose Expansion Enrollment Completion
second half of this year
medium materiality
High
R289 Phase 1b Top-line Data Readout
by the end of the year
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Tavalise
Strong quarter with record net product sales, driven by efforts to expand adoption in the community setting. Emerging frontline venetoclax data may further reinforce its relevance in the post-venetoclax setting.
Record net product salesGrowing community use
$47.4 million27%——
Gavretto
Experienced a modest decline year-over-year.
$10.7 millionmodest decline——
ResLydia
Strong growth year-over-year, with efforts to target IDH-1 patients in the community.
$8.9 million27%——
U.S. Net Product Sales (Total)
Overall U.S. net product sales increased by $8.1 million over Q2 2025.
$67 million14%——
Contract Revenues
Driven by global market availability of Tavalise and a regulatory milestone payment for Aluda Sydenham.
$5.8 million from Kisei (including $4.7 million regulatory milestone for Lutus Hidnip in Japan)$5 million from Riffles (royalties and drug supplies)$300,000 from MediSan (drug supply and royalties)
$11.7 million———

Product announcements

ProductTypeDetails
Vepinu (Vebdigestrant)launch

Deals & partnerships

Arvinas and Pfizer Exclusive Global License for Vepinu (Vebdigestrant) $70 million upfront payment; $15 million in milestones for transition activities; up to $320 million in potential regulatory and commercial payments; tiered royalties from mid-teens to mid-20s on cumulative net sales.

The transaction closed in June, adding a fourth FDA-approved product to Rigel's portfolio. Arvinas and Pfizer remain responsible for current ongoing development activities.

Risks & headwinds

Increased operating costs and expenses Q2 FY26

Total costs and expenses increased to $55.1 million in Q2 FY26 from $40.6 million in Q2 FY25.

Mitigation:Management aims to maintain financial discipline while funding existing and new clinical development programs and delivering top-line growth and positive net income.

Reduction in cash, cash equivalents, and short-term investments Q2 FY26

Decreased to $95.3 million as of Q2 FY26 end from $155 million at the end of 2025.

Mitigation:Primarily due to the $70 million upfront payment for the Vepinu in-license, which is a strategic investment for long-term growth. Company expects positive net income for FY26.

Modest decline in Gavretto net product sales Q2 FY26

$10.7 million in Q2 FY26, with a modest decline year-over-year.

Mitigation:Company remains committed to supporting Gavretto alongside other commercial products, though Vepinu will be the lead focus.

What to watch in Q3 FY26

Vepinu Initial Sales

next quarter (Q3 FY26 results in November)
Current Not yet available (launching mid-August)
Target Initial sales figures for Q3 FY26

Why it matters

Vepinu is expected to be Rigel's largest commercial product and a key driver for future growth; initial uptake will indicate market acceptance and commercial execution.

In terms of the timing, we will be reporting the Q3 sales that we accomplished, but that'll be in November. We'll actually have those. Now, this will be a short and quarter.

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Q&A highlights

How will the 'lead focus' on Vepinu impact efforts for Tavalise and ResLydia, and what gives confidence in maintaining support for existing products?

Management clarified that the sales team, while focused on Vepinu, will leverage increased access to accounts to also support Tavalise and ResLydia. For ResLydia, they use AI and diagnostic data to selectively target IDH-1 patients in the community, ensuring efficient resource allocation. The Vepinu launch is creating more access opportunities for the sales force.

“So, what we have here is an opportunity to go in, really talk about Vepinu a lot. The team has already been doing that, as I said, since close. And actually, what's been interesting is they're getting more access to it. accounts because of that. And that enables them to support TAVALI, support ResLydia when there are patients available.”

asked by Joe Pangenius · answered by Unknown Speaker

2 min read 5 chapters

Detailed narrative

Strategic Transformation and Growth Drivers

Rigel Pharmaceuticals has undergone a significant transformation since 2020, evolving from a single-product company with limited pipeline and cash burn into a profitable multi-product entity. The company's strategy focuses on growing its commercial business, expanding its portfolio through in-licensing or acquisition, advancing its development pipeline, and maintaining financial discipline. The recent in-license of Vepinu is a key step in this evolution, expected to be Rigel's largest commercial product and a meaningful growth driver through the end of the decade.

Vepinu Launch and Market Opportunity

Vepinu, the first and only FDA-approved PROTAC for ER-positive, HER2-negative, ESR1-mutated metastatic breast cancer, is on track for commercial availability in mid-August, ahead of schedule. Management believes it has the potential to become a market-leading treatment due to its novel mechanism of action, impressive efficacy (2.4-fold improvement in median PFS), and manageable safety profile demonstrated in the Phase III Veritac II trial. The estimated U.S. market opportunity for this patient population is over $1 billion annually, with approximately 20,000 patients diagnosed and treated each year in the second-line or later setting.

R289 Pipeline Advancement

The company is actively advancing R289, a dual IRAC1 and IRAC4 inhibitor, for lower-risk myelodysplastic syndrome (MDS). The Phase 1b study's dose escalation phase showed encouraging preliminary safety and efficacy, with 33% of evaluable patients achieving red blood cell transfusion independence (RBCTI) for 8 weeks or longer. R289 has Fast Track and Orphan Drug designations, and the company plans to complete dose expansion enrollment and share top-line data by year-end, with potential for a registration trial discussion with the FDA.

Commercial Portfolio Performance

Rigel reported strong Q2 FY26 U.S. net product sales of $67 million, a 14% year-over-year increase. Tavalise achieved record net product sales of $47.4 million, growing 27% year-over-year, driven by expanding community use. ResLydia also saw 27% year-over-year growth in net product sales to $8.9 million. While Gavretto experienced a modest decline, the company remains committed to supporting its existing products alongside the Vepinu launch.

Collaborations and Future Pipeline

Rigel continues to leverage collaborations for its other pipeline assets. Olutacitinib is being evaluated in multiple clinical studies for IDH1-mutated AML and high-grade glioma through partnerships with MD Anderson and the Connect Cancer Consortium, respectively. A planned study with Minalmatch for first-line AML and MDS is also in progress. These collaborations aim to explore additional indications and generate future data.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.