10-Q · May 5, 2026
Rigel Pharmaceuticals reported Q1 2026 revenue growth of 10.3% year-over-year to $58.8 million, driven by strong product sales including a 31% increase for TAVALISSE and REZLIDHIA. Despite the growth, net income was…
Earnings analysis · 10-Q
RIGL earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Rigel's Q2 underlying commercial performance improved: net product sales rose to $67.0 million, led by TAVALISSE and REZLIDHIA, and total revenue rebounded sequentially to $78.7 million. Reported revenue nevertheless…
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Rigel's Q2 underlying commercial performance improved: net product sales rose to $67.0 million, led by TAVALISSE and REZLIDHIA, and total revenue rebounded sequentially to $78.7 million. Reported revenue nevertheless fell $23.0 million year over year because Q2 2025 included a $40.0 million non-cash Lilly collaboration item that did not recur. The company generated $33.4 million of six-month operating cash flow, but cash declined to $95.3 million following the $70.0 million VEPPANU upfront license payment and related investment; the mid-August VEPPANU launch is the principal near-term upside catalyst and execution risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Sequential revenue recovery, distorted YoY comparison
Q2 revenue was $78.7 million, up approximately 33% sequentially from $59 million in Q1 2026, but down $23.0 million year over year from $101.7 million. The year-over-year decline principally reflects the absence of a $40.0 million non-cash Lilly collaboration revenue item in Q2 2025.
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Core product portfolio grew 14%
Net product sales increased $8.1 million year over year to $67.0 million. TAVALISSE grew 18% to $47.4 million and REZLIDHIA grew 27% to $8.9 million, more than offsetting GAVRETO's 10% decline to $10.7 million.
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Still-high margins despite cost normalization
Gross profit was $70.2 million on $78.7 million of revenue and $8.5 million of product costs, implying an 89.2% gross margin. Operating income was approximately $23.6 million after $14.0 million of R&D and $32.6 million of SG&A, or a 30.0% operating margin.
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Operating cash generation remained positive
Six-month operating cash flow increased to $33.4 million from $29.6 million a year earlier. Liquidity included $95.3 million of cash, cash equivalents and short-term investments at June 30, and management states existing resources support projected requirements for at least the next 12 months.
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VEPPANU launch creates a new growth vector
VEPPANU is expected to become commercially available in mid-August 2026. The licensed breast-cancer product addresses an estimated 20,000 eligible US second- or third-line patients, and its pivotal ESR1-mutated cohort showed a 43% reduction in risk of progression or death versus fulvestrant.
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R289 has late-2026 clinical catalysts
Management expects to complete R289 dose-expansion enrollment and select a recommended Phase 2 dose in the second half of 2026, with preliminary data anticipated by year-end 2026. The study is expected to enroll approximately 86 patients.
What to watch
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VEPPANU economics and transition execution risk
VEPPANU requires a $70.0 million upfront payment already paid, up to $15.0 million more for transition activities, up to $60.0 million in regulatory milestones and up to $260.0 million in commercial milestones. Rigel also must reimburse ongoing development costs up to an aggregate $40.0 million through 2029; transition, supply, access and adoption execution remain unproven ahead of launch.
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Cash drawdown and borrowing-base liquidity risk
Cash, cash equivalents and short-term investments fell $59.7 million from $155.0 million at December 31, 2025 to $95.3 million at June 30, 2026. The new MidCap revolver had $40.0 million drawn at quarter-end, is secured by substantially all assets, and has a variable rate of one-month SOFR plus 4.00%; $32.0 million was repaid in July, leaving $8.0 million outstanding.
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Potential 100% pharmaceutical tariff exposure
A newly highlighted tariff risk could raise product costs: the April 2, 2026 proclamation imposes a 100% ad valorem tariff on patented pharmaceutical imports and associated ingredients for smaller importers from September 29, 2026. Although all three commercial products have orphan designation, qualification for the potential 0% exemption remains uncertain.
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GAVRETO volume and regulatory pressure
GAVRETO sales declined 10% year over year to $10.7 million due to lower volumes and higher revenue reserves. Its label added a boxed warning for serious and opportunistic infections in December 2025, while confirmatory requirements for the thyroid-cancer accelerated-approval indication remain under discussion with FDA.
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Loss of Lilly collaboration income
Lilly terminated its collaboration effective June 15, 2026, and Rigel does not expect future milestones or royalties under that agreement. This follows a $40.0 million non-cash collaboration-revenue benefit recorded in Q2 2025, helping explain collaboration revenue falling to $11.7 million from $42.7 million.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance. Management expects product-sales revenue to increase in coming quarters as seasonal reimbursement effects subside and VEPPANU launches in August 2026.
Earlier filings 4
10-K · March 3, 2026
Rigel’s 2025 10-K documents a clear commercial pivot: product sales grew materially in 2025 with TAVALISSE net sales of $158.8 million (up 51.6% vs. $104.8M in 2024), REZLIDHIA $31.0 million (up 34.8% vs. $23.0M) and…
10-Q · August 5, 2025
Rigel reported a strong Q2 2025 with total revenue of $101.685M and GAAP net income of $59.613M, producing diluted EPS of $3.28. Revenue growth was driven by product sales of $58.948M and a $39.981M release of a…
10-Q · May 6, 2025
Rigel reported Q1 2025 revenue of $53,333 (thousands) and GAAP net income of $11,446 (thousands), producing diluted EPS of $0.63. Revenue grew 80.6% year-over-year (from $29,534) driven by product sales ($43,550) and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.