Rigel Pharmaceuticals Inc

Rigel Pharmaceuticals, Inc (NASDAQ: RIGL) is a biotechnology firm dedicated to developing innovative therapies aimed at enhancing the quality of life for patients suffering from hematologic disorders and cancer. The company concentrates on advancing products that target key signaling pathways essential to the underlying mechanisms of these diseases.

As per our previous US Diversified Opportunities Report published on ‘RIGL’ on October 30, 2025, Kalkine provided a ‘Buy’ stance on the stock at USD 29.41 based on “price action, recent key business and financial updates, momentum in the stock over the last month, valuation upside, and technical indicators analysis” and the stock price has now moved up by ~33.46% since then and has attained resistance 1 and resistance 2.

Noted below are the details of support and resistance levels provided in our previous report:

Valuation Methodology: Price/Earnings Multiple Based Relative Valuation

Sell @ USD 39.25, Investment Rationales:

• Heavy Dependence on a Limited Product Portfolio: Despite reporting strong sales growth in Q3 FY2025, Rigel Pharmaceuticals (RIGL) remains highly reliant on three key products — TAVALISSE®, GAVRETO®, and REZLIDHIA® — which collectively account for over 90% of its total revenue. This limited diversification exposes the company to concentration risk, where any regulatory, clinical, or competitive disruption affecting one of these drugs could materially impact overall financial performance. The lack of multiple high-revenue contributors restricts Rigel’s ability to offset potential losses from market saturation or declining prescription volumes in core products.
• Rising R&D and Personnel-Related Costs: Rigel’s total operating expenses reached USD 122.2 million in the first nine months of FY2025, up from USD 114.1 million in the prior year, primarily driven by expanded research and development efforts and higher personnel-related costs. While the company continues to invest in clinical programs like R289 and olutasidenib, these rising expenses may pressure margins and cash flow sustainability if new approvals or partnerships do not materialize promptly. Additionally, dependence on external collaborations for pipeline progress adds uncertainty to cost recovery timelines.
• Uncertain Pipeline and Collaboration Risks: Although Rigel has ongoing studies and alliances — including with Eli Lilly, MD Anderson, and Canaan — the termination of its CNS collaboration with Eli Lilly raises concerns over pipeline stability and future milestone revenues. The early-stage nature of most programs, such as R289’s Phase 1b and new Phase 2 trials, implies high development risk with limited near-term commercial visibility. Any delays, adverse trial outcomes, or partnership withdrawals could significantly hinder projected growth and investor confidence.
• Overvaluation Concerns Amid Execution Risk: Following strong quarterly earnings, Rigel’s stock appears vulnerable to profit-taking and valuation correction, given that much of its positive outlook is already priced in by the market. The updated FY2025 revenue guidance of USD 285–290 million reflects only modest upside from prior forecasts, suggesting limited incremental growth potential in the near term. With increased operational costs, dependency on milestone payments, and heavy competition in hematology and oncology, the risk-reward balance at current levels skews unfavorably, supporting a cautious or sell stance. 

Daily Chart

Considering a volatile market condition led by recent tariffs escalation from United States and subsequent retaliation, resistance 1 and resistance 2 attainment, recessionary fear, higher interest rate and geopolitical disruption, a ‘Sell’ rating is assigned to the ‘RIGL’ at the current market price of USD 39.25, as of November 05, 2025, at 07:00 am PST.

Note: This report may be updated with details around fundamental and technical analysis, price chart in due course, as appropriate.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is November 05, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.