Shares of Rigel Pharmaceuticals (RIGL) reached a four-month low on Wednesday after the company, with its Q4 2025 results, projected a revenue decline for 2026 driven by a sharp fall in its contract revenue.
While the South San Francisco, California-based biotech reaffirmed its full-year outlook issued in January, its topline projection of about $275M – $290M indicated a ~4% YoY drop at the midpoint compared to the $294.3M in total revenue it recorded last year.
While the company expects its net product sales to reach roughly $255M – $265M with an ~11% YoY rise at the midpoint, its projection for contract revenue at $20M – $25M implies a ~64% YoY decline at the midpoint.
In 2025, Rigel (RIGL) added $62.3M in contract revenues from collaborations, primarily due to a $40.0M non-cash revenue attributed to the cost share liability from Lilly (LLY) related to the development and commercialization of rheumatoid arthritis therapy, ocadusertib.
However, RIGL’s Q4 2025 results of $13.54 of GAAP earnings per share on $69.8M of revenue exceeded Street forecasts by $12.31 and $1.1M, respectively, as the company recorded $245.9M of non-cash deferred income tax benefit during the quarter.