2023-04-03 15:46:46 ET
- Piper Sandler has initiated Rigel Pharmaceuticals with a hold rating saying that while a recent downsizing and in-licensing of a leukemia drug are positives, more visibility is needed on the road to profitability.
- The firm has a $2 price target (~52% upside based on Friday's close).
- Analyst Allison Bratzel wrote that the in-licensing of Rezlidhia (olutasitenib) for acute myeloid leukemia is an effective leverage of its sales force, and momentum for Tavalisse (fostamatinib) for immune thrombocytopenia is improving.
- She said while the two drugs do allow for value creation along with potential in some pipeline assets, Rigel ( NASDAQ: RIGL ) has limited balance sheet flexibility.
- Bratzel added that she will wait to get more into Rigel ( RIGL ) if it can provide some indications it is on a path to profitability.
- Read why Seeking Alpha contributor Stephen Ayers argues that Rigel ( RIGL ) is a buy.
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Rigel Pharma begun at neutral at Piper Sandler on value creation potential