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RIGL Shares Surge on Rheumatoid Arthritis Data

http://biz.yahoo.com/ap/071213/rigel_pharmaceuticals_study.html

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Thursday December 13, 9:40 am ET


SOUTH SAN FRANCICSO, Calif. (AP) -- Shares of Rigel Pharmaceuticals Inc. surged in Thursday morning trading, after the drug developer said its rheumatoid arthritis drug candidate was effective in a midstage study.

The stock surged $6.49, or 81 percent, to $14.49, well above its prior 52-week high of $12.46.

The study of drug candidate R788, or tamatinib fosdium, involved 189 patients receiving one of three doses of the oral treatment. Both the 100-milligram and 150-milligram doses showed comparable results, with effects seen in as early as one week, the company said.

Rheumatoid arthritis, a debilitating chronic inflammatory disease, affects more than 2 million people in the U.S.

Rigel said it plans to start the drug's next clinical trial in 2008.

Jefferies & Co. analyst Dr. Adam A. Walsh said Rigel will likely move the 100-milligram dose into future studies, citing its better side-effect profile compared with the 150-milligram dose. He added that the company may possibly test a 75-milligram dose in the future.

"We view these efficacy results as significantly better than our and Wall Street expectations," Walsh write in a note to clients. "Our rheumatoid arthritis physician consultant views the efficacy as 'very strong' and 'highly clinically meaningful' for an oral rheumatoid arthritis drug."

Walsh did caution that a 10 percent rate of patients developing the blood disorder neutropenia when taking the 100-milligram dose warrants monitoring, though it is likely manageable
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