FMTX - Rigel Pharma adds ~7% to reach over two month high

• The shares of clinical-stage biotech Rigel Pharmaceuticals, Inc. ( NASDAQ: RIGL ) continued the recent momentum to add more than 7% at the market open on Thursday, reaching the highest level since June.
• Ahead of the uptick in RIGL shares, H.C. Wainwright more than doubled the price target for the stock to a Street high of $15 from $7 per share.
• Pantginis partly attributes the target raise to the addition of leukemia candidate “olutasidenib to our valuation to fully account for its relatively near-term starting contribution to the valuation of Rigel” after RIGL inked a licensing deal with Forma Therapeutics ( FMTX ) for the oral therapy.
• Per the terms of the agreement, RIGL will take over the potential launch and commercialization of olutasidenib in the U.S. and work with partners to develop and sell the drug overseas.
• In return, Forma ( FMTX ) will receive $2M of upfront payment in addition to $215.5M of milestone payments in total.

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