Market Outperform/Speculative Risk - Price 9.72 on June 9
by Rodman & Renshaw

We are initiating coverage of RIGL with an Outperform rating and a 33 target. We derive our price target using a 35 times P/E multiple on our fully diluted 2014 EPS estimate of $3.07, discounted at 30%. Our [investment] thesis is based on our view that Rigel's lead compound, R788 -- a novel oral agent for the treatment of rheumatoid arthritis -- has the potential to become a significant player in the very large RA [market], due to its efficacy, disease-modifying potential and oral administration. R788 is currently in two randomized Phase IIb trials....R788 has [also] shown promising efficacy in both ITP and B-cell lymphoma. Market cap: $357 million.

RA drug

biotech play