Wells Fargo Initiating Coverage On RIGL With An Outperform Rating And A $10-12 Valuation Range

Wells Fargo is initiating coverage on Rigel Pharmaceuticals, Inc.'s (NASDAQ: RIGL)

Rigel Pharmaceuticals' lead drug fostamatinib is in phase III for rheumatoid arthritis (RA), partnered with Astra Zeneca (NYSE: AZN), Wells Fargo reports.

“The drug could potentially be the second-to-market agent among new classes of oral therapies for the disease,” Wells Fargo writes. “Based on our analyses of the clinical data, extensive key opinion leader (KOL) discussions, and an examination of regulatory precedent, we believe fostamatinib has a high likelihood of phase III success, approval, and broad adoption.”

Rigel Pharmaceuticals currently trades at $8.01.