Rigel Pharmaceuticals reported record fourth‑quarter and full‑year 2025 financial results, with total revenue of $69.8 million for the quarter and $294.3 million for the year, both up 41% and 60% respectively from 2024. Net product sales drove the growth, with TAVALISSE contributing $45.6 million, GAVRETO $10.2 million, and REZLIDHIA $9.6 million, each segment expanding double‑digit growth. Contract revenues rose to $4.4 million in the quarter, largely from a $3.4 million collaboration with Grifols, and totaled $62.3 million for the year.
Operating income reached $22.7 million, and after a $245.9 million non‑cash deferred tax benefit, the company posted net income of $268.1 million for the quarter, or $14.72 basic earnings per share. The EPS of $1.14 (or $1.12) missed the consensus estimate of $1.33, a miss of $0.19 or about 14% relative to expectations, largely because the large deferred tax benefit inflates GAAP net income while not reflecting ongoing operating profitability.
Full‑year 2025 results showed net product sales of $232.0 million, with TAVALISSE sales of $158.8 million, GAVRETO $42.1 million, and REZLIDHIA $31.0 million. Contract revenues for the year were $62.3 million, and the company reported net income of $367.0 million, or $20.40 basic earnings per share. The EPS of $1.12 (or $1.14) also missed the consensus estimate of $1.33, a miss of $0.21 or about 16% relative to expectations.
Management guidance for 2026 projects total revenue of $275 to $290 million and net product sales of $255 to $265 million. President and CEO Raul Rodriguez said, "I am proud to highlight Rigel's tremendous progress during 2025 across each of the key value drivers of our business." He added, "These 2025 accomplishments set the stage for a strong 2026, as reflected in our financial guidance and our plans to advance our R289 program in lower‑risk MDS."
The results underscore Rigel’s transition from a cash‑burning development company to a profitable, growth‑driven commercial enterprise. Double‑digit growth in all three core products was driven by strong demand, particularly for TAVALISSE, which benefited from increased patient affordability under Medicare Part D, as explained by Executive Vice President and Chief Commercial Officer David Santos: "Tavalise experienced significant growth due to increased patient affordability, particularly with Medicare Part D." GAVRETO’s growth from $28‑30 million to over $40 million demonstrates the success of Rigel's in‑licensing strategy, Santos noted: "Gavreto has grown from $28-30 million to over $40 million, demonstrating the success of Rigel's in‑licensing strategy."
Market reaction was mixed. While revenue was in line with expectations, the EPS miss tempered investor enthusiasm. The stock experienced a slight decline in aftermarket trading, reflecting the EPS miss, but gained 0.73% on the day of the announcement, indicating a mild positive reaction to the strong revenue performance and forward guidance.
The company’s non‑cash deferred tax benefit of $245.9 million, while boosting GAAP net income, highlights the importance of evaluating operating profitability separately. Investors and analysts will likely focus on the sustainability of the double‑digit growth in product sales and the progress of the R289 pipeline, which could further strengthen Rigel’s commercial portfolio in the coming years.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.