Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) investors are having a rough day as the company just reported results from its second phase 3 for fostamatinib in ITP. The first trial was positive by a nose, with a drug response rate of 18% and zero placebo responses. However, while the response rate for the drug arm in this study was again 18%, a single placebo response among 24 patients threw off the stat analysis of the second trial which posted a p-value of 0.152.
Rigel Pharmaceuticals shares reacted to the disappointing trial results, tumbling nearly 27% to $2.34 in Thursday’s session.
“We believe that the totality and consistency of data from the FIT Phase 3 program, which included two Phase 3 studies and one long-term extension study, strongly supports a clear treatment effect, with a sustained clinical benefit of fostamatinib,” said Raul Rodriguez, president and chief executive officer of Rigel. “We are encouraged by these results and believe that the risk/benefit ratio for fostamatinib is positive for patients with chronic/persistent ITP, a population with a serious unmet medical need. As a result, we will continue to pursue this opportunity. Our next step is to seek feedback from the FDA.”
On the ratings front, Rigel Pharmaceuticals has been the subject of a number of recent research reports. In a report issued on September 15, Piper Jaffray analyst Joshua Schimmer reiterated a Buy rating on RIGL, with a price target of $11, which represents a potential upside of 450% from where the stock is currently trading. Separately, on the same day, H.C. Wainwright’s Shaunak Deepak reiterated a Buy rating on the stock.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Joshua Schimmer and Shaunak Deepak have a total average return of -0.7% and -17.6% respectively. Schimmer has a success rate of 45% and is ranked #3312 out of 4180 analysts, while Deepak has a success rate of 41% and is ranked #3926.
Overall, 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $6.50 which is 225.0% above where the stock opened today.
Rigel Pharmaceuticals, Inc. is a clinical stage drug development company. It discovers and develops novel, targeted drugs in the therapeutic areas of immunology, oncology and immune oncology. The company focuses on intracellular signaling pathways and related targets that are critical to disease mechanisms. Its current product development programs include Fostamatinib Oral SYK Inhibitor and R348 Topical Ophthalmic JAK/SYK Inhibitor.