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Why Rigel Pharmaceuticals Stock Is Jumping Today

TheMotleyFool

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Why Rigel Pharmaceuticals Stock Is Jumping TodayPhoto, wide shot, wide-angle lens, Medical device manufacturer, Blue hour, twilight, cool, ISO1200, slow shutter speed, photo by Michael Light: https://img.theapi.app/temp/3a7f6312-1eee-4702-9005-93cc1e62f970.png

Shares of Rigel Pharmaceuticals (NASDAQ: RIGL) were jumping 10.3% as of 12:30 p.m. EST. The gain came after Rigel and Eli Lilly (NYSE: LLY) announced a collaboration to develop and market Rigel's experimental drug R552.

Rigel will receive an up-front payment of $125 million from Lilly under the new agreement. In addition, Rigel could be eligible for milestone payments of up to $835 million. The company will also receive tiered royalties from any future sales of R552, ranging from the mid-single digits to the high teens.

Image source: Getty Images.

Source Fool.com

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