UPDATE: Oppenheimer Downgrades Rigel Pharmaceuticals on Disappointing Ph.III OKSIRA-2/3 Studies

In a report published on Tuesday, Oppenheimer analyst David Ferreiro downgraded Rigel Pharmaceuticals RIGL from Outperform to Perform and removed the price target of $10.

In the report, Oppenheimer noted, "As in the prior OKSIRA-1 results (methotrexate-failures), fostamatinib showed significantly higher ACR20 rates over placebo at 100mg BID in both studies, but these results appear suboptimal vs. current injectable RA therapies. While AZN did not reveal more critical ACR50 and 70 rates, it has decided to return fostamatinib rights to Rigel based on its review of the totality of the ph.III OSKIRA results. We now believe fostamatinib may no longer be viable commercially and at best addresses a small salvage opportunity in RA."

Rigel Pharmaceuticals closed on Monday at $4.53.