Boston, MA, 03/11/2014 – After a positive last week, Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL), a clinical stage drug development company, started its latest week on a positive note as well. Its latest earnings report and the research results for R118 has spiked the rally in the stock.
R118 Effective Results
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) published the study results of it’s R118 last week. As per the reports, R118, which is an orally bioavailable AMPK (MP-activated protein kinase) activator, showed solid preclinical evidence that the drug can be effectively be used to help treat peripheral artery disease (PAD). It is to be noted that PAD affects approximately 5% of the population falling in the zone of over-50 and its related disorders. After the successful evidence, the company plans to undertake Phase I clinical trial for the drug to treat Intermittent Claudication, which is also one of the related disorders of PAD.
Strong Quarterly Earnings
Apart from a strong R118 data, the company appears strong in terms of its quarterly earnings reports. For the reported quarter, the company posted earnings per share of ($0.19) and revenue of $5.8 million. The cash in hand is also sufficient to finance its business operations till the second quarter of 2016. The stock value has recorded a growth of 36% since then, which is a decent return for its investors and a sign of relief for the company, which went through a long period of decline since 2012.
Speaking of the future prospects of R118, then it is to be taken into account that the U.S. population is expected to grow at a pace of 341 million by the year 2020. And, therefore, treating 5% of this population would mean nearly 6 million patients by the same year, implying a notable revenue stream for Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL). However, the main fact would remain about the Rigel’s capability to capture the most of the market.