Rigel Received its Third Buy in a Row

After H.C. Wainwright and Piper Jaffray assigned a Buy rating to Rigel in the last month, the company received another Buy, this time from Cantor Fitzgerald. Analyst Elemer Piros reiterated a Buy rating on Rigel (NASDAQ: RIGL) today and set a price target of $9. The company’s shares opened today at $3.70.

Piros observed:

“Higher-Than-Expected Pricing. Previously, we modeled a $55,000 effective annual price for TAVALISSE compared to Rigel’s established WAC pricing of $113,400. Applying a ~20% discount, we assume effective annual pricing of $90,000 per patient and believe the drug product profile to support such pricing. As a reminder, TAVALISSE is a well-tolerated oral agent, with a differentiated mechanism of action to competitive TPO agents and a quick onset of clinical effect (median time to response of two weeks). Based on the updated pricing, we now estimate that TAVALISSE could achieve annual revenues of ~$240 million when reaching market penetration of 40% (implying 12% of the addressable market becomes responders, with a response-rate assumption of 30%) by 2022. Rigel plans to file an MAA in the EU in 4Q18 and an application in Canada in 2019, which, if approved, could reflect additional upside to our estimates. On the call, Rigel reiterated plans to establish an EU partner for TAVALISSE in 4Q18.”

According to TipRanks.com, Piros is ranked 0 out of 5 stars with an average return of -5.7% and a 41.4% success rate. Piros covers the Healthcare sector, focusing on stocks such as Spring Bank Pharmaceuticals Inc, Strongbridge Biopharma Plc, and Global Blood Therapeutics.

Currently, the analyst consensus on Rigel is Strong Buy and the average price target is $7.20, representing a 94.6% upside.

In a report issued on April 17, Piper Jaffray also maintained a Buy rating on the stock with a $7 price target.

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The company has a one-year high of $4.71 and a one-year low of $2.14. Currently, Rigel has an average volume of 2.82M.

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Rigel Pharmaceuticals, Inc. operates as a clinical stage biotechnology company. It discovers and develops novel, targeted drugs in the therapeutic areas of immunology, oncology and immune oncology. It focuses on intracellular signaling pathways and related targets that are critical to disease mechanisms.

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