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    RIGL
    Earnings call· Jun 2026(Q2 FY26)

    RIGEL PHARMACEUTICALS Q2 FY26 earnings call RIGL

    Aug 4, 2026 Source

    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

    7
    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

    5
    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———

    Operational metrics

    35
    Compound Annual Growth Rate
    approximately 35%
    2022-2026

    Reflects Rigel's transformation and performance foundation.

    U.S. Net Product Sales Increase
    $8.1 millionover Q2 FY25
    Q2 FY26

    Contributed to overall 14% year-over-year growth in U.S. net product sales.

    ESR1 Mutation Prevalence
    up to 50%
    ongoing

    Percentage of patients who may develop an ESR1 mutation over time after endocrine therapy and CDK4-6 inhibitor treatment.

    Estimated Annual U.S. Patients
    20,000
    annually

    This patient population represents a U.S. market opportunity of more than $1 billion.

    Oral SIRDs Market Share
    nearly 60%
    current

    Reflects clinicians' eagerness for new options; adoption strongest in academic centers.

    Oral SIRDs Market Share
    nearly 30%
    current

    Reflects clinicians' eagerness for new options.

    Metastatic Breast Cancer Patients Treated in Community
    approximately 80%
    current

    Highlights the importance of community outreach for new treatments like Vepinu.

    Sales Deductions
    $21.4 million
    Q2 FY26

    Deducted from gross sales to arrive at net product sales.

    Cost of Product Sales
    $8.5 million
    Q2 FY26

    Reported for the second quarter of 2026.

    Total Costs and Expenses
    $55.1 millionvs $40.6 million for Q2 FY25
    Q2 FY26

    Increase primarily due to increased R&D costs (R289 clinical activities, Arvinas/Pfizer development costs), increased cost of product sales, and higher personnel costs.

    Income Before Income Taxes
    $23.6 million
    Q2 FY26

    Reported for the second quarter of 2026.

    Net Income
    $17.3 millionvs $59.6 million in Q2 FY25
    Q2 FY26

    Lower than prior year due to a non-cash revenue item in Q2 FY25.

    Cash, Cash Equivalents, and Short-term Investments
    $95.3 millionvs $155 million as of end of 2025
    as of Q2 FY26 end

    Decrease primarily due to the $70 million upfront payment for Vepinu in-license.

    Vepinu Upfront Payment
    $70 million
    Q2 FY26

    Paid following the close of the transaction with Arvinas and Pfizer.

    Vepinu Milestone Payments
    $15 million
    future

    Owed to Arvinas and Pfizer.

    Vepinu Potential Regulatory and Commercial Payments
    up to $320 million
    future

    Potential payments to Arvinas and Pfizer.

    Vepinu Tiered Royalties
    mid teens to mid 20s
    future

    Owed to Arvinas and Pfizer.

    Rigel Contribution to Vepinu Development
    up to $40 million
    over next four years

    In support of ongoing development activities by Arvinas and Pfizer.

    Veritac-2 Patients with ESR1 Mutation
    43%
    clinical trial

    All patients in Veritac-2 had received endocrine therapy and a CDK4-6 inhibitor.

    Veritac-2 Patients with Prior CDK4-6 Inhibitor and Endocrine Therapy
    100%
    clinical trial

    Demonstrates real-world applicability of the trial population.

    Vebdigestrant Objective Response Rate (ORR)
    18.6%vs 4% for fulvestrant
    clinical trial

    More than quadrupled the ORR observed with fulvestrant.

    Vebdigestrant Grade 3+ Treatment Emergent Adverse Events (TEAEs)
    23%vs 18% for fulvestrant
    clinical trial

    Manageable safety profile.

    Vebdigestrant Discontinuations due to Adverse Events
    3%
    clinical trial

    Low rate, indicating good tolerability.

    Vebdigestrant Dose Reductions due to Adverse Events
    2%
    clinical trial

    Low rate, indicating good tolerability.

    Vebdigestrant Fatigue
    27%
    clinical trial
    Vebdigestrant ALT/AST Increases
    approximately 14%
    clinical trial
    Vebdigestrant Nausea
    13%
    clinical trial
    Vebdigestrant Diarrhea (any grade)
    6%
    clinical trial

    Did not meet the 10% threshold for inclusion on the slide, indicating low incidence.

    Vebdigestrant Mean QTCF Increase
    11.1 millisecondsfrom baseline
    clinical trial

    Indicates no large QT prolonging effect, despite inclusion in warning section of US package insert.

    R289 Red Blood Cell Transfusion Independence (RBCTI) Achievement
    33%
    Phase 1b dose escalation

    Encouraging efficacy in heavily pretreated, transfusion-dependent, lower risk MDS population.

    R289 RBCTI Duration
    4 patients
    Phase 1b dose escalation

    Further breakdown of RBCTI achievement.

    R289 RBCTI Duration
    3 patients
    Phase 1b dose escalation

    Further breakdown of RBCTI achievement.

    R289 Median Duration of RBCTI
    approximately 23 weeks
    Phase 1b dose escalation

    Indicates sustained response in some patients.

    R289 Median Time to Onset of RBCTI
    about two months
    Phase 1b dose escalation

    Relatively quick onset of response.

    Lower-Risk MDS Previously Treated Patients
    about 12,000
    current

    Represents the target population for R289, highlighting a high unmet need.

    Industry KPIs

    6
    MetricValueDetails
    Launch access metricsNCCN Category 2A targeted therapy
    Pipeline read out calendarR289 Phase 1b top-line data by year-end
    Regulatory approvals filingsVepinu FDA Approval
    Peak long term sales guidanceEstimated >$1 billion U.S. market opportunityUSD
    Clinical trial efficacy safety dataVebdigestrant median PFS 5.0 months (HR 0.57, p<0.001)months
    Collaboration milestone royalty revenue$11.7 millionUSD

    Product announcements

    1
    ProductTypeDetails
    Vepinu (Vebdigestrant)launch

    Deals & partnerships

    1
    Arvinas and PfizerExclusive 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

    3
    Increased operating costs and expensesQ2 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 investmentsQ2 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 salesQ2 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

    4

    Vepinu Initial Sales

    next quarter (Q3 FY26 results in November)
    CurrentNot yet available (launching mid-August)
    TargetInitial 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.