Shares of Rigel Pharmaceuticals (RIGL Quick QuoteRIGL - Free Report) have rallied 76.7% in the past three months. This stock price rally can be attributed to growing investor confidence regarding the strong growth of the company’s lead drug, Tavalisse (fostamatinib disodium hexahydrate), as well as other marketed products.

Tavalisse is an oral spleen tyrosine kinase inhibitor. It is approved by the FDA for the treatment of adult patients with chronic immune thrombocytopenia (“ITP”) who have had an insufficient response to a previous treatment. The drug is also approved in Europe, the United Kingdom, Japan and some other countries.

The company’s net product sales increased 76.2% year over year during the second quarter of 2025, marking the best quarter ever for Rigel. Tavalisse, which has been driving the majority of the company’s revenues, accounted for more than 65% of the company’s net product sales during the second quarter of 2025.

Let’s analyze Rigel’s strengths and weaknesses to understand how to play the stock amid the recent share price rally.

Tavalisse Boosts RIGL’s Top Line, Other Drugs Add Momentum

Tavalisse, Rigel’s first product, was launched in the United States in 2018. The drug remains the key top-line driver for the company.

In the first half of 2025, Tavalisse generated sales of $68.5 million, up around 44% year over year. Sales of the drug are being driven by continued strong new patient demand and the momentum is expected to continue in the second half of 2025.

Rigel is also making good progress with its second FDA-approved product, Rezlidhia (olutasidenib). The drug is indicated for treating relapsed/refractory acute myeloid leukemia (“AML”) with a susceptible IDH1 mutation. Rezlidhia sales increased 31% year over year during the first half of 2025.

Rigel has an exclusive license agreement with Dr. Reddy's (RDY Quick QuoteRDY - Free Report) to develop and commercialize Rezlidhia in all potential indications throughout Dr. Reddy's territory, which includes Latin America, South Africa, India, Southeast Asia, North Africa, Australia and New Zealand, among others. The company is entitled to receive potential regulatory and commercial milestone payments from RDY.

Rigel added a third product, Gavreto (pralsetinib), to its portfolio after it acquired commercial rights to the drug from Blueprint Medicines, now part of Sanofi (SNY Quick QuoteSNY - Free Report) , in 2024. The company started recognizing Gavreto sales from June 2024. Incremental sales from the drug boosted Rigel’s top line during the first half of 2025.

Owing to the strong sales performance of its marketed products, Rigel increased its total revenue guidance last month. The company now projects total revenues of $270-$280 million for 2025, compared with the previous expectation of $200-$210 million.

Net product sales are now expected to be in the range of $210-$220 million versus the previous guidance of $185 to $192 million. Tavalisse is expected to remain a meaningful contributor to product sales during this time.

Looking ahead, sales are expected to grow steadily as Rigel expands its commercial footprint and strengthens its marketing infrastructure, driving continued momentum for Tavalisse while focusing on improving demand for Rezlidhia and Gavreto.

RIGL's Pipeline Progress

Apart from these approved drugs, RIGL is developing other candidates, and the pipeline progress has been encouraging.

A phase Ib study is evaluating R289, a novel dual IRAK1 and IRAK4 inhibitor, in patients with lower-risk myelodysplastic syndrome (MDS). Enrollment in the dose escalation part of the study has been completed. Rigel plans to initiate the dose expansion part of the study in the second half of 2025. The updated dose escalation data is also expected later in the year.

Earlier this year, the FDA granted an Orphan Drug designation to R289 for the treatment of myelodysplastic syndromes.

The company is also exploring Rezlidhia’s (olutasidenib) use beyond relapsed or refractory IDH1-mutated AML into other cancers with IDH1 mutations, such as recurrent glioma.

RIGL's Competition in the Target Market

While Rigel has been riding on the success of Tavalisse, competition looms large in the target market. The FDA recently approved Sanofi’s Wayrilz (rilzabrutinib), a novel BTK inhibitor, for the treatment of persistent or chronic ITP in adult patients who have had an insufficient response to a previous treatment.

Per SNY, Wayrilz is now the first BTK inhibitor to be approved by the FDA for treating ITP in the United States. Wayrilz is currently under review in the EU and China as a treatment for ITP.

Though Tavalisse and Wayrilz are built on different mechanisms, a successful launch of the latter is likely to pose a significant threat to Tavalisse, given the resources available for a large drugmaker like Sanofi.

RIGL Stock Price, Valuation & Estimates

Year to date, shares of Rigel have rallied 103.5% compared with the industry’s rise of 9.9%. The stock has also outperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. RIGL shares are currently trading above the 50 and 200-day moving averages.

RIGL Stock Outperforms Industry, Sector & S&P 500

Image Source: Zacks Investment Research

From a valuation standpoint, Rigel is trading at a discount to the industry. Going by the price-to-sales (P/S) ratio, the stock currently trades at 2.32 times trailing 12-month sales value, lower than 2.42 times for the industry. The stock is trading above its five-year mean of 2.21.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased from $2.25 to $5.10 over the past 60 days. During the same time frame, EPS estimates for 2026 have moved up from $1.60 to $3.07.

Image Source: Zacks Investment Research

How to Play RIGL Stock

We remain optimistic about Rigel, buoyed by its strong performance in the first half of 2025 and the upbeat guidance for 2025. Growth in Tavalisse sales should boost the top line. Incremental contributions from its other marketed drugs should also aid the top line.

The company is making good progress in its pipeline development and successful data readouts from the same should further aid the stock.

While competitive risks remain from large drugmakers, Rigel’s recent developments, growing portfolio and improving earnings estimates present an optimistic outlook. We believe there is more room for growth and recommend prospective investors to add this Zacks Rank #1 (Strong Buy) stock to their portfolios at the present attractive valuation for meaningful gains in both the short and long term. You can see the complete list of today’s Zacks #1 Rank stocks here.