RIGEL PHARMACEUTICALS INC 10-Q

Item 1. Financial Statements RIGEL PHARMACEUTICALS, INC. CONDENSED BALANCE SHEETS (In thousands) As of March 31, 2026 December 31, 2025 ⁽¹⁾ (unaudited) Assets Current assets: Cash and cash equivalents $ 24,411 $ 40,580 Short-term investments 122,273 114,375 Accounts receivable, net 49,945 51,763 Inventories 11,652 11,506 Prepaid and other current assets 25,746 21,942 Total current assets 234,027 240,166 Intangible assets, net 24,160 24,748 Deferred income tax asset 243,279 245,852 Operating lease right-of-use assets 785 920 Other assets 2,357 1,908 Total assets $ 504,608 $ 513,594 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 4,486 $ 7,191 Accrued compensation 6,009 11,914 Accrued research and development 5,742 5,524 Acquisition-related liabilities 5,000 5,000 Revenue reserves and refund liability 28,080 27,716 Loans payable, net, current portion 29,865 29,812 Other accrued liabilities 9,674 11,466 Lease liabilities, current portion 636 614 Total current liabilities 89,492 99,237 Long-term portion of lease liabilities 228 395 Long-term portion of loans payable, net 14,991 22,482 Total liabilities 104,711 122,114 Commitments Stockholders’ equity: Common stock 18 18 Additional paid-in capital 1,414,394 1,414,322 Accumulated other comprehensive (loss) income ( 128 ) 181 Accumulated deficit ( 1,014,387 ) ( 1,023,041 ) Total stockholders’ equity 399,897 391,480 Total liabilities and stockholders’ equity $ 504,608 $ 513,594 ______________________________________________________________________ (1) The balance sheet as of December 31, 2025 has been derived from the audited financial statements included in Rigel’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission (SEC) on March 3, 2026. See Accompanying Notes to Condensed Financial Statements 3 Table of Contents RIGEL PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (unaudited) Three Months Ended March 31, 2026 2025 Revenues: Product sales, net $ 54,923 $ 43,550 Contract revenues from collaborations 3,895 9,783 Total revenues 58,818 53,333 Costs and expenses: Cost of product sales 4,606 4,409 Research and development 11,676 8,436 Selling, general and administrative 30,651 27,715 Total costs and expenses 46,933 40,560 Income from operations 11,885 12,773 Interest income 1,205 591 Interest expense ( 1,433 ) ( 1,853 ) Income before income taxes 11,657 11,511 Provision for income taxes 3,003 65 Net income $ 8,654 $ 11,446 Net income per share Basic $ 0.47 $ 0.64 Diluted $ 0.44 $ 0.63 Weighted average shares used in computing net income per share Basic 18,412 17,808 Diluted 19,686 18,169 See Accompanying Notes to Condensed Financial Statements 4 Table of Contents RIGEL PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (unaudited) Three Months Ended March 31, 2026 2025 Net income $ 8,654 $ 11,446 Other comprehensive loss: Net unrealized loss on short-term investments ( 309 ) ( 12 ) Comprehensive income $ 8,345 $ 11,434 See Accompanying Notes to Condensed Financial Statements 5 Table of Contents RIGEL PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (In thousands, except share amounts) (unaudited) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity Shares Amount Balance as of January 1, 2026 18,310,934 $ 18 $ 1,414,322 $ 181 $ ( 1,023,041 ) $ 391,480 Net income — — — — 8,654 8,654 Net change in unrealized loss on short-term investments — — — ( 309 ) — ( 309 ) Issuance of common stock upon exercise of options, net of shares withheld 50,157 — 321 — — 321 Issuance of common stock upon vesting of restricted stock units (RSUs) 226,221 — — — — — Repurchases of common stock in connection with employee tax withholding on RSU vesting ( 105,728 ) — ( 3,740 ) — — ( 3,740 ) Stock-based compensation expense — — 3,491 — — 3,491 Balance as of March 31, 2026 18,481,584 $ 18 $ 1,414,394 $ ( 128 ) $ ( 1,014,387 ) $ 399,897 Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Stockholders’ Equity Shares Amount Balance as of January 1, 2025 17,710,216 $ 18 $ 1,393,325 $ 10 $ ( 1,390,065 ) $ 3,288 Net income — — — — 11,446 11,446 Net change in unrealized loss on short-term investments — — — ( 12 ) — ( 12 ) Issuance of common stock upon exercise of options, net of shares withheld 30,892 — 484 — — 484 Issuance of common stock upon vesting of RSUs 125,783 — — — — — Stock-based compensation expense — — 3,361 — — 3,361 Balance as of March 31, 2025 17,866,891 $ 18 $ 1,397,170 $ ( 2 ) $ ( 1,378,619 ) $ 18,567 See Accompanying Notes to Condensed Financial Statements 6 Table of Contents RIGEL PHARMACEUTICALS, INC. CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Three Months Ended March 31, 2026 2025 Operating activities Net income $ 8,654 $ 11,446 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Stock-based compensation expense 3,456 3,324 Depreciation and amortization 597 604 Deferred income tax 2,573 — Net amortization of discount on short-term investments and term loans ( 170 ) ( 190 ) Changes in assets and liabilities: Accounts receivable, net 1,818 68 Inventories ( 581 ) 1,413 Prepaid and other current and non-current assets ( 3,792 ) ( 13,150 ) Right-of-use assets 135 ( 1,059 ) Accounts payable ( 2,705 ) 615 Accrued compensation ( 5,905 ) ( 4,115 ) Accrued research and development 218 575 Revenue reserves and refund liability 364 1,495 Other accrued liabilities ( 1,792 ) ( 2,954 ) Lease liabilities ( 145 ) 1,035 Net cash provided by (used in) operating activities 2,725 ( 893 ) Investing activities Maturities of short-term investments 15,945 11,100 Purchases of short-term investments ( 23,920 ) ( 21,652 ) Net cash used in investing activities ( 7,975 ) ( 10,552 ) Financing activities Principal payments of term loans ( 7,500 ) — Net proceeds from issuance of common stock under equity plans 321 484 Repurchases of common stock in connection with employee tax withholding on RSU vesting ( 3,740 ) — Net cash (used in) provided by financing activities ( 10,919 ) 484 Net decrease in cash, cash equivalents and restricted cash ( 16,169 ) ( 10,961 ) Cash, cash equivalents, and restricted cash at beginning of period 40,637 56,746 Cash, cash equivalents, and restricted cash at end of period $ 24,468 $ 45,785 Supplemental disclosure of cash flow information Interest paid $ 1,320 $ 1,653 Increase in right-of-use assets and lease liabilities $ — $ 1,220 Acquisition-related liabilities $ 5,000 $ 5,000 See Accompanying Notes to Condensed Financial Statements 7 Table of Contents Rigel Pharmaceuticals, Inc. Notes to Condensed Financial Statements (unaudited) In this report, “Rigel,” “we,” “us” and “our” refer to Rigel Pharmaceuticals, Inc. 1. Organization and Summary of Significant Accounting Policies Description of Business We are a biotechnology company dedicated to developing and providing novel therapies that significantly improve the lives of patients with hematologic disorders and cancer. We focus on products that address signaling pathways that are critical to disease mechanisms. TAVALISSE ® (fostamatinib disodium hexahydrate) is our first US Food and Drug Administration (FDA)-approved product and is the only approved oral spleen tyrosine kinase (SYK) inhibitor for the treatment of adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response to a previous treatment. The product is also commercially available in Europe and the United Kingdom (UK) (as TAVLESSE), and in Japan, the Republic of Korea (Korea), Canada and Israel (as TAVALISSE) for the treatment of chronic ITP in adult patients. REZLIDHIA ® (olutasidenib) is our second FDA-approved product and indicated for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 ( IDH1 ) mutation as detected by an FDA-approved test. W e in-licensed REZLIDHIA from Forma Therapeutics, Inc., now Novo Nordisk (Forma), with exclusive, worldwide rights for its development, manufacturing and commercialization, pursuant to a license and transition services agreement entered in July 2022. GAVRETO ® (pralsetinib) is our third FDA-approved product which we began commercializing in June 2024. GAVRETO is a once daily, small molecule, oral, kinase inhibitor of wild-type rearranged during transfection ( RET ) and oncogenic RET fusions. GAVRETO is approved by the FDA for the treatment of adult patients with metastatic RET fusion-positive non-small cell lung cancer (NSCLC) as detected by an FDA-approved test. GAVRETO is also approved under accelerated approval based on overall response rate and duration response rate, for the treatment of adult and pediatric patients 12 years of age and older with advanced or metastatic RET fusion-positive thyroid cancer who require systemic therapy and who are radioactive iodine-refractory (if radioactive iodine is appropriate). We acquired the rights to research, develop, manufacture and commercialize GAVRETO in the US from Blueprint Medicines Corporation, now a Sanofi SA company (Blueprint), pursuant to an asset purchase agreement entered in February 2024. Our development pipeline includes R289, our dual interleukin receptor-associated kinases 1 and 4 (IRAK1/4) inhibitor program, which is being advanced in an open-label, Phase 1b study to determine the safety, tolerability and preliminary efficacy of the drug in patients with lower-risk myelodysplastic syndrome (MDS) who are relapsed, refractory or resistant to prior therapies. To expand our evaluation of olutasidenib in other disease areas with IDH1 mutations, we have strategic development collaborations with the University of Texas MD Anderson Cancer Center (MDACC) and with Collaborative Network for Neuro-Oncology Clinical Trials (CONNECT). Basis of Presentation Our accompanying unaudited condensed financial statements have been prepared in accordance with United States generally accepted accounting principles (US GAAP), for interim financial information and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities Act of 1933, as amended (Securities Act). Accordingly, they do not include all the information and notes required by US GAAP for complete financial statements. These unaudited condensed financial statements include only normal and recurring adjustments that we believe are necessary to fairly state our financial position and the results of our operations and cash flows. Interim-period results are not necessarily indicative of results of operations or cash flows for a full-year or any subsequent interim period. The balance sheet as of December 31, 2025 has been derived from audited financial statements at that date but does not include all disclosures required by US GAAP for complete financial statements. Because certain disclosures required by US GAAP for complete financial statements are not included herein, these interim unaudited condensed financial statements and the notes accompanying them should be read in conjunction with our audited financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025. 8 Table of Contents Use of Estimates The preparation of the accompanying unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ from these estimates. Significant Accounting Policies Our significant accounting policies are described in “Note 1 – Description of Business and Summary of Significant Accounting Policies” to our “Notes to Financial Statements” contained in Part II, Item 8, “Financial Statements and Supplementary Data” of our Annual Report on Form 10-K for the year ended December 31, 2025 . Liquidity As of March 31, 2026, we had approximately $ 146.7 million in cash, cash equivalents and short-term investments. We finance our operations primarily through sales of our products, and contract payments under our collaboration agreements, as well as through equity securities and debt financing. Based on our current operating plan, we believe that our existing cash, cash equivalents, and short-term investments will be sufficient to fund our expenses and capital expenditure requirements for at least the next 12 months from the date of issuance of this Form 10-Q. Recently Issued Accounting Standards In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. This guidance enhances expense disclosure requirements for a public business entity’s expenses by mandating detailed information regarding types of expenses (including purchases of inventory, employee compensation, depreciation and amortization) contained in income statement expense categories. This guidance is effective for our annual reporting for the fiscal year ending December 31, 2027, and interim reporting periods starting with the fiscal year ending December 31, 2028, though early adoption is available. This guidance may be applied prospectively to reporting periods after the effective date or retrospectively to all periods presented in the financial statements. We are currently evaluating this guidance and assessing the potential impact on our financial statements and disclosures. In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets , introducing a practical expedient for credit loss measurement on accounts receivable and contract assets. This guidance is effective for our annual reporting period for the fiscal year ending December 31, 2026, including interim periods within such reporting period, though early adoption is available. The adoption of this guidance did not have a material impact on our financial statements and disclosures. In December 2025, the FASB issued ASU 2025-10 , Accounting for Government Grants Received by Business Entities, which establishes the accounting and presentation for government grants received by a business entity. This guidance is effective for our annual reporting period for the fiscal year ending December 31, 2029, and related interim periods, though early adoption is available. Organizations may adopt this guidance using modified prospective, modified retrospective, or retrospective approaches. We are currently evaluating this guidance and assessing the potential impact on our financial statements and disclosures. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements to improve the guidance in Topic 270, Interim Reporting. The update provides clarifications aimed at improving interim disclosure requirement consistency and usability, incorporating a comprehensive listing of required interim disclosures and a new disclosure principle for reporting material events occurring after the most recent annual period. The amendments do not change the underlying objectives of interim reporting but are designed to enhance clarity in application. This guidance is effective for our interim reporting periods for the fiscal year ending December 31, 2028. We are currently evaluating the impact of adoption of this standard on our financial statements and disclosures. In December 2025, the FASB issued ASU 2025-12, Codification Improvements , which addresses thirty-three issues, representing amendments to Accounting Standard Codification topics that clarify, correct errors or make minor improvements. The amendments make the Codification easier to understand and apply. The update is effective for us in our annual reporting period for the fiscal year ending December 31, 2027, and interim periods within such reporting period. 9 Table of Contents Early adoption and retrospective application are permitted on an issue-by-issue basis. We are currently evaluating this guidance and assessing the potential impact on our financial statements and disclosures. Other recently issued accounting guidance not discussed in this Quarterly Report on Form 10-Q are either not applicable or did not have, or are not expected to have, a material impact on us. 2. Net Income Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands except per share amounts): Three Months Ended March 31, 2026 2025 EPS Numerator: Net income $ 8,654 $ 11,446 EPS Denominator—Basic: Weighted-average common shares outstanding 18,412 17,808 EPS Denominator—Diluted: Weighted-average common shares outstanding 18,412 17,808 Dilutive effect of stock options, RSUs and shares under Purchase Plan 1,274 361 Weighted-average shares outstanding and common stock equivalents 19,686 18,169 Net income per share Basic $ 0.47 $ 0.64 Diluted $ 0.44 $ 0.63 The potential shares of common stock that were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive are as follows (in thousands): Three Months Ended March 31, 2026 2025 Stock options 936 2,582 RSUs 416 231 Shares under Purchase Plan — 25 Total 1,352 2,838 10 Table of Contents 3. Revenues Revenues disaggregated by category were as follows (in thousands): Three Months Ended March 31, 2026 2025 Product sales: Gross product sales $ 75,388 $ 60,192 Discounts and allowances ( 20,465 ) ( 16,642 ) Total product sales, net 54,923 43,550 Contract revenues from collaborations: Milestone revenue — 3,000 Delivery of drug supplies, royalties and others 3,895 6,783 Total contract revenues from collaborations 3,895 9,783 Total revenues $ 58,818 $ 53,333 Revenue from product sales relates to sales of our commercial products to customers. For additional information regarding revenue from collaborations, see “Note 4 – Sponsored Research and License Agreements.” Net product sales represent gross product sales less chargebacks, discounts and fees, government and other rebates, and returns. Of the total discounts and allowances from gross product sales presented in the table above for the three months ended March 31, 2026 and 2025, $ 18.9 million and $ 16.1 million, respectively, were accounted for as additions to revenue reserves and refund liability, and $ 1.5 million and $ 0.5 million, respectively, were accounted for as reductions to accounts receivable (prompt pay discount) and prepaid and other current assets (for certain prepaid fees) in the condensed balance sheet. The following tables summarize activity in chargebacks, discounts and fees, government and other rebates, and returns included in revenue reserves and refund liabilities for each of the periods presented (in thousands): Chargebacks, Discounts and Fees Government and Other Rebates Returns Total Balance as of January 1, 2026 $ 12,519 $ 10,389 $ 4,808 $ 27,716 Provision related to current period sales 14,379 4,766 550 19,695 Adjustment related to prior period sales ( 363 ) ( 381 ) — ( 744 ) Credit or payments made during the period ( 14,459 ) ( 3,848 ) ( 280 ) ( 18,587 ) Balance as of March 31, 2026 $ 12,076 $ 10,926 $ 5,078 $ 28,080 Chargebacks, Discounts and Fees Government and Other Rebates Returns Total Balance as of January 1, 2025 $ 13,374 $ 8,343 $ 4,723 $ 26,440 Provision related to current period sales 12,811 3,654 398 16,863 Adjustment related to prior period sales — ( 148 ) ( 560 ) ( 708 ) Credit or payments made during the period ( 12,928 ) ( 1,669 ) ( 63 ) ( 14,660 ) Balance as of March 31, 2025 $ 13,257 $ 10,180 $ 4,498 $ 27,935 Adjustment related to prior period sales reflect updates to estimates of variable consideration, including chargebacks, rebates, and returns, resulting from actual claims and other information obtained in the current reporting period. 11 Table of Contents The following table summarizes the percentages of revenues from each of our customers who individually accounted for 10% or more of the total net product sales and revenues from collaborations: Three Months Ended March 31, 2026 2025 McKesson Corporation 48 % 42 % Cencora, Inc. 23 % 20 % Optime Care, Inc. — 11 % Cardinal Health, Inc. 12 % * ______________________________________________________________________ * Denotes less than 10% 4. Sponsored Research and License Agreements We conduct research and development programs independently and in connection with our corporate collaborators. We were a party to a collaboration agreement with Eli Lilly and Company (Lilly), which included the development and commercialization of ocadusertib (previously R552), a receptor-interacting protein kinase 1 ( RIPK1) inhibitor; however, in April 2026, we received a written notice from Lilly to terminate the agreement, as discussed in more detail below. We are currently a party to collaboration agreements with Grifols S.A. (Grifols) to commercialize fostamatinib for human diseases in all indications in Grifols territory which includes Europe, the UK, Turkey, the Middle East, North Africa and Russia (including Commonwealth of Independent States (CIS)); with Kissei Pharmaceutical Co., Ltd. (Kissei) to develop and commercialize fostamatinib in Japan, China, Taiwan and Korea, and olutasidenib in Japan, Korea and Taiwan; with Medison Pharma Trading AG (Medison Canada) and Medison Pharma Ltd. (Medison Israel and, together with Medison Canada, Medison) to commercialize fostamatinib in all indications, in Medison territory which includes Canada and Israel; with Knight Therapeutics International SA (Knight) to commercialize fostamatinib in all indications, in Knight territory which includes Latin America, consisting of Mexico, Central and South America, and the Caribbean; and with Dr. Reddy’s Laboratories (Dr. Reddy’s) to commercialize olutasidenib in Dr. Reddy’s territory which includes Latin America, South Africa, India, Australia, New Zealand, and certain countries in the CIS, Southeast Asia region and North Africa. Further, we are also a party to collaboration agreements, but do not have ongoing performance obligations with BerGenBio ASA, now Oncoinvent ASA (BerGenBio) for the development and commercialization of AXL receptor tyrosine kinase i nhibitor, R428 (now referred to as bemcentinib (BGB324)), and with Daiichi Sankyo (Daiichi) to pursue research related to murine double minute 2 ( MDM2) inhibitor, DS-3032 (now referred as milademetan). Under the above collaboration agreements, we have received, and may in the future receive, milestone payments contingent upon the achievement of specified events, as well as royalties on net sales of products commercialized by our partners. The total potential future contingent payments under these agreements were approximately $ 657.1 million. This amount accounts for terminated programs and Lilly’s April 2026 notice to terminate the Lilly Agreement, as discussed in detail below, and assumes the achievement of all applicable milestones under the existing agreements. Of this amount, $ 195.1 million relates to development and regulatory milestones and $ 462.0 million to commercial milestones. This estimate excludes any potential royalties that may become payable if our partners successfully commercialize licensed products. Milestone payments under these agreements are contingent upon our partners’ future efforts and the achievement of specified development, regulatory and commercial milestones. We also have strategic development collaborations with MDACC and CONNECT to expand the evaluation of olutasidenib in other disease areas with IDH1 mutations. Global Exclusive License Agreement with Lilly In February 2021, we entered a global exclusive license agreement and strategic collaboration with Lilly, which became effective in March 2021 upon clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and was amended in September 2023, March 2024, and in August 2025 (collectively, Lilly Agreement). Pursuant to the terms of the Lilly Agreement, we granted Lilly the exclusive rights to develop and commercialize ocadusertib (previously R552) and related receptor interacting serine/threonine protein kinase 1 (RIPK1) inhibitors in all indications worldwide. The 12 Table of Contents collaboration was to develop and commercialize ocadusertib for the treatment of non-central nervous system (non-CNS) diseases, and additional RIPK1 inhibitors for the treatment of central nervous system (CNS) diseases. Under the Lilly Agreement, we received a non-refundable and non-creditable upfront cash payment amounting to $ 125.0 million in April 2021. In addition, for non-CNS diseases, we were eligible to receive up to $ 330.0 million in development and regulatory milestones and up to $ 100.0 million in sales milestones on a product-by-product basis, as well as tiered royalties on net sales ranging from the mid-single digits to high-teens, subject to certain standard reductions and offsets. For CNS diseases, we were eligible to receive up to $ 256.0 million in development, regulatory and commercial milestones and up to $ 150.0 million in sales milestone payments, as well as tiered royalties on net sales up to low-double digits. On April 16, 2026, we received a written notice from Lilly of its decision to terminate the Lilly Agreement, which will become effective June 15, 2026. Following termination of the Lilly Agreement, including the prior termination of the CNS disease program effective in November 2025, we do not expect to receive future milestones or royalties under the Lilly Agreement. Under the Lilly Agreement, we were responsible for 20 % of the development costs for ocadusertib in the US, Europe, and Japan, up to a specified cap, and Lilly was responsible for funding the remainder of all development activities for ocadusertib and other non-CNS disease development candidates. In September 2023, we exercised our first opt-out right, and concurrently, our cost share obligation for ocadusertib development ended on April 1, 2024. Although we retained a right to opt back into co-funding to receive increased royalties, we notified Lilly in April 2025 that we would not exercise this option. As a result, we have no further development cost-sharing obligations. In connection with this decision, we released the $ 40.0 million remaining cost share liability and recognized the amount as contract revenues from collaboration in the second quarter of 2025. As of March 31, 2026 and December 31, 2025, there was no deferred revenue related to the Lilly Agreement. Grifols License Agreement We have an exclusive commercialization license agreement with Grifols entered in January 2019 with exclusive rights to commercialize fostamatinib for human diseases, and non-exclusive rights to develop fostamatinib in Grifols territory. There was no deferred revenue related to the Grifols license agreement as of March 31, 2026 and December 31, 2025. Pursuant to our commercial supply agreement with Grifols, no revenue was recognized from delivery of drug supplies to Grifols for the three months ended March 31, 2026. Revenue recognized for such deliveries was $ 3.3 million for the three months ended March 31, 2025. We also recognize royalty revenue from Grifols included within contract revenues from this collaboration. Royalty revenue for the three months ended March 31, 2026 and 2025 from Grifols was $ 1.8 million and $ 1.4 million, respectively. Kissei License Agreements We have a collaboration and license agreement with Kissei entered in September 2024 to grant exclusive rights to Kissei to develop and commercialize olutasidenib in all human diseases in related Kissei territory. There was no deferred revenue related to this related collaboration and license agreement as of March 31, 2026 and December 31, 2025. We also have an exclusive license and supply agreement with Kissei entered in October 2018, amended in November 2022, October 2023, August 2024, September 2024 and October 2024, to develop and commercialize fostamatinib in all current and potential indications in related Kissei territory. As of March 31, 2026 and December 31, 2025, the remaining deferred revenue was related to the material right associated with discounted fostamatinib supply which amounted to $ 1.4 million. During the three months ended March 31, 2025, we recognized $ 3.0 million of contract revenue from collaborations related to a non-refundable and non-creditable milestone payment from Kissei in connection with the approval of fostamatinib in Korea. Pursuant to our supply agreement with Kissei, for the three months ended March 31, 2026 and 2025, we recognized $ 1.8 million and $ 1.6 million, respectively, of revenue related to delivery of drug supplies to Kissei. 13 Table of Contents Medison Commercial and License Agreements We have exclusive commercial and license agreements with Medison entered in October 2019 for the commercialization of fostamatinib for chronic ITP in Medison territory. There was no deferred revenue related to Medison commercial and license agreement as of March 31, 2026 and December 31, 2025. Revenue recognized from Medison related to delivery of drug supplies and royalties for the three months ended March 31, 2026 and 2025 was $ 0.3 million and $ 0.4 million, respectively. Strategic Development Collaborations with MDACC and CONNECT We have a Strategic Collaboration Agreement with MDACC entered in December 2023 to evaluate olutasidenib in AML and other hematologic cancers. Under the agreement, we are obligated to provide study materials and up to $ 15.0 million in time-based milestone payments over the five-year collaboration term, unless terminated earlier. Through March 31, 2026 , we have provided $ 5.3 million in funding to MDACC. In January 2024, we announced our collaboration with CONNECT to conduct a Phase 2 clinical trial to evaluate olutasidenib in glioma. Under this agreement, we are obligated to provide study materials and up to $ 3.0 million in funding over the four-year collaboration term. Amounts paid under these research collaboration agreements are recorded as prepaid research and development to the extent payments are made in advance of services and are recognized as research and development expense as the services are performed. 5. In-licensing and Acquisition Asset Purchase Agreement with Blueprint We acquired the US rights to research, develop, manufacture and commercialize GAVRETO from Blueprint pursuant to an Asset Purchase Agreement entered in February 2024. The acquired assets from Blueprint include, among other things, applicable intellectual property related to pralsetinib in the US, including patents, copyrights and trademarks, as well as clinical regulatory and commercial data and records. Pursuant to the Asset Purchase Agreement, we agreed to pay a purchase price of $ 15.0 million, of which, $ 10.0 million was payable upon our first commercial sale of GAVRETO and an additional $ 5.0 million is payable on the first anniversary of the closing date of the agreement, subject to certain conditions. Blueprint is also eligible to receive up to $ 97.5 million in future commercial milestone payments and up to $ 5.0 million in future regulatory milestone payments. Blueprint is also entitled to tiered royalty payments on net sales of products containing pralsetinib (or related compounds) ranging from 10 % to 30 %, subject to certain reductions and offsets. The total purchase price consideration amounted to $ 15.4 million, consisting of $ 15.0 million closing purchase price and $ 0.4 million of transaction costs. Of the total closing purchase price, $ 10.0 million was paid in July 2024, and the remaining $ 5.0 million was outstanding as of March 31, 2026 and December 31, 2025 and presented as acquisition-related liabilities in the condensed balance sheets. We accounted for this transaction as an asset acquisition in accordance with ASC 805 Business Combinations (ASC 805) and recorded the to tal purchase consideration as intangible assets at the acquisition date. The intangible assets are amortized on a straight-line basis over an estimated useful life of 12 years, with amortization recognized in cost of product sales. Royalties are also recognized in cost of product sales, as the related product sales occur. License and Transition Services Agreement with Forma We have a license and transition services agreement with Forma entered in July 2022, for an exclusive license to develop, manufacture and commercialize olutasidenib, a proprietary inhibitor of mutated IDH1 (m IDH1 ), for any uses worldwide, including for the treatment of AML and other malignancies. Under the terms of the license and transition services agreement, we paid an upfront fee of $ 2.0 million, and may be required to pay up to an additional $ 67.5 million upon achievement of specified development and regulatory milestones, and up to $ 165.5 million upon achievement of certain commercial milestones. Forma is also entitled to receive tiered royalties on net sales of licensed products at percentages ranging from the low-teens to mid-thirties, as well as certain portion of sublicensing revenue, subject to certain standard reductions and offsets. 14 Table of Contents The transaction was accounted for as an acquisition of asset under ASC 730, Research and Development . Milestone payments incurred prior to regulatory approval of an indication associated with the acquired licensed asset were recognized as research and development expense. Accordingly, the upfront fee of $ 2.0 million was recorded as acquired in-process research and development (IPR&D) and expensed within research and development expense in the statements of operations in 2022. In addition, a $ 2.5 million regulatory milestone achieved prior to the FDA approval of REZLIDHIA in December 2022 was also recognized as research and development expense in 2022. On December 1, 2022, the FDA approved REZLIDHIA capsules for the treatment of adult patients with R/R AML with susceptible IDH1 mutations, as detected by an FDA-approved test. Following approval and first commercial sale in December 2022, Forma became entitled to receive aggregate milestone payments of $ 15.0 million. Because these milestone obligations were incurred upon and after regulatory approval, the amounts were capitalized as intangible assets on our condensed balance sheet. The intangible assets are amortized on a straight-line basis over an estimated useful life of 14 years, with amortization recognized in cost of product sales. Royalties are also recognized in cost of product sales, as the related product sales occur. 6. Stock-Based Compensation Stock-based compensation for the periods presented was as follows (in thousands): Three Months Ended March 31, 2026 2025 Selling, general and administrative $ 3,015 $ 2,452 Research and development 441 872 Total stock-based compensation expense $ 3,456 $ 3,324 Pursuant to our 2018 Equity Incentive Plan (2018 Plan) and our Inducement Plan, as amended (Inducement Plan, and together with 2018 Plan, the Equity Incentive Plans), during the three months ended March 31, 2026, we granted stock options to purchase 36,775 shares of common stock, with weighted-average grant-date fair value of $ 30.14 per share, and 618,358 RSUs, with a grant-date weighted-average fair value of $ 35.77 per share. In recent years, we have increased our use of RSUs, and beginning in 2026, RSUs represent the majority of our equity awards. Beginning in 2026, we also grant performance-based RSUs tied to the achievement of specified corporate performance milestones. These equity awards generally vest over a three-year period, except for performance-based awards, which vest upon the achievement of specified corporate performance milestones. The fair value of the RSU is based on the market price of our common stock on the date of grant. The fair value of stock option awards is estimated on the grant date using the Black-Scholes option pricing model. The following table summarizes the weighted-average assumptions relating to stock options granted during the periods presented: Three Months Ended March 31, 2026 2025 Risk-free interest rate 3.8 % 4.4 % Expected term (in years) 5.3 6.5 Dividend yield 0.0 % 0.0 % Expected volatility 90.5 % 88.5 % During the three months ended March 31, 2026, 121,846 stock options were exercised and 226,221 RSUs were released. During the three months ended March 31, 2026, we withheld 105,728 shares of common stock, with an aggregate value of approximately $ 3.7 million, in connection with the net share settlement of RSUs to satisfy employees’ minimum statutory tax withholding obligations upon vesting. The withheld shares were valued based on the closing market price of our common stock on the applicable vesting dates. Such share withholdings are treated as share repurchases for accounting purposes and are reflected as a reduction to additional paid-in capital. As of March 31, 2026, there were 3,436,088 stock options and 983,847 RSUs outstanding. Of these, 168,564 stock options and 67,200 RSUs were performance-based awards for which achievement of the related corporate milestones 15 Table of Contents was deemed not probable as of March 31, 2026. Accordingly, none of the associated $ 5.5 million of grant date fair value has been recognized as stock-based compensation expense as of March 31, 2026. As of March 31, 2026, there was approximately $ 33.4 million of unrecognized stock-based compensation expense, which is expected to be recognized over a remaining weighted-average period of 2.52 years. This amount relates to time-based stock options and RSUs, as well as performance-based stock options and RSUs for which achievement of the related corporate performance milestones was considered probable. As of March 31, 2026 , there were 702,279 shares of common stock available for future grant under our Equity Incentive Plans. Employee Stock Purchase Plan The current 24-month offering under our Employee Stock Purchase Plan (Purchase Plan) commenced on July 1, 2024. As of March 31, 2026, there was approximately $ 0.2 million of unrecognized stock-based compensation cost related to the Purchase Plan, which is expected to be recognized over a remaining weighted-average period of 0.25 years. As of March 31, 2026, 96,998 shares were available for future issuance under the Purchase Plan. 7. Other Balance Sheet Components Inventories Inventories for the periods presented consist of the following (in thousands): As of March 31, 2026 December 31, 2025 Raw materials $ 3,427 $ 4,514 Work in process 6,229 3,910 Finished goods 4,097 4,712 Total $ 13,753 $ 13,136 Reported as: Inventories $ 11,652 $ 11,506 Other assets 2,101 1,630 Total $ 13,753 $ 13,136 Non-current inventories included within other assets in the condensed balance sheet consist primarily of active pharmaceutical ingredient (API) classified as raw materials which have multi-year shelf life, as well as certain work in process and finished goods inventories that are not expected to be consumed beyond our normal operating cycle. Advance payments to our contract manufacturers to manufacture APIs as well as APIs pending final release for commercial usage are classified as prepaid inventory and included within prepaid and other current assets in the condensed balance sheet. See prepaid and other current assets below for related details. 16 Table of Contents Prepaid and other current assets Prepaid and other current assets for the periods presented consist of the following (in thousands): As of March 31, 2026 December 31, 2025 Prepaid inventory $ 13,407 $ 11,849 Prepaid research and development costs 5,204 4,886 Others 7,135 5,207 Total prepaid and other current assets $ 25,746 $ 21,942 Intangible assets Intangible assets consist of the following (in thousands): As of March 31, 2026 December 31, 2025 Intangible assets cost $ 30,360 $ 30,360 Accumulated amortization ( 6,200 ) ( 5,612 ) Intangible assets, net $ 24,160 $ 24,748 Amortization expense included in cost of product sales in the condensed statements of operations was $ 0.6 million for each of the three months ended March 31, 2026 and 2025. The following table presents the estimated future amortization expense of intangible assets as of March 31, 2026 (in thousands): Remainder of 2026 $ 1,763 2027 2,351 2028 2,351 2029 2,351 2030 2,351 Thereafter 12,993 $ 24,160 17 Table of Contents 8. Cash, Cash Equivalents, Restricted Cash, and Short-Term Investments Cash, cash equivalents, restricted cash, and short-term investments for the periods presented consist of the following (in thousands): As of March 31, 2026 December 31, 2025 Cash $ 10,719 $ 20,020 Restricted cash 57 57 Money market funds 12,593 14,509 US treasury bills 76,474 63,994 Government-sponsored enterprise securities 23,113 20,692 Corporate bonds and commercial paper 23,785 35,740 $ 146,741 $ 155,012 Reported as: Cash and cash equivalents $ 24,411 $ 40,580 Short-term investments 122,273 114,375 Restricted cash reported within other assets 57 57 $ 146,741 $ 155,012 Cash equivalents and short-term investments include the following securities with gross unrealized gains and losses (in thousands): As of March 31, 2026 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value US treasury bills $ 76,554 $ 30 $ ( 110 ) $ 76,474 Government-sponsored enterprise securities 23,147 8 ( 42 ) 23,113 Corporate bonds and commercial paper 23,799 4 ( 18 ) 23,785 Total $ 123,500 $ 42 $ ( 170 ) $ 123,372 As of December 31, 2025 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value US treasury bills $ 63,868 $ 126 $ — $ 63,994 Government-sponsored enterprise securities 20,663 30 ( 1 ) 20,692 Corporate bonds and commercial paper 35,714 28 ( 2 ) 35,740 Total $ 120,245 $ 184 $ ( 3 ) $ 120,426 Our short-term investments are classified as available-for-sale securities. Accordingly, we have classified these securities as short-term investments on our condensed balance sheets as they are available for use in the current operations. Accrued interest receivable, included within prepaid and other assets, was $ 1.0 million and $ 0.9 million of March 31, 2026 and December 31, 2025 , respectively. As of March 31, 2026 and December 31, 2025, our cash equivalents and short-term investments had a weighted-average time to maturity of approximately 317 days and 303 days, respectively. As of March 31, 2026 , a total of 67 individual securities had been in an unrealized loss position for 12 months or less, and the losses were determined to be temporary. We regularly review the securities in an unrealized loss position and evaluate the current expected credit loss by considering factors such as historical experience, market data, issuer-specific factors, and current economic conditions. We have not recognized any credit losses as of March 31, 2026 and December 31, 2025. 18 Table of Contents The following table shows the fair value and gross unrealized losses of our investments in individual securities that are in an unrealized loss position, aggregated by investment category (in thousands): As of March 31, 2026 Fair Value Gross Unrealized Losses US treasury bills $ 11,023 $ ( 37 ) Government-sponsored enterprise securities 11,645 ( 40 ) Corporate bonds and commercial paper 72,607 ( 93 ) Total $ 95,275 $ ( 170 ) 9. Fair Value The table below summarizes the fair value of our cash equivalents and short-term investments measured at fair value on a recurring basis, and are categorized based upon the lowest level of significant input to the valuations (in thousands): Assets at Fair Value as of March 31, 2026 Level 1 Level 2 Level 3 Total Money market funds $ 12,593 $ — $ — $ 12,593 US treasury bills — 76,474 — 76,474 Government-sponsored enterprise securities — 23,113 — 23,113 Corporate bonds and commercial paper — 23,785 — 23,785 Total $ 12,593 $ 123,372 $ — $ 135,965 Assets at Fair Value as of December 31, 2025 Level 1 Level 2 Level 3 Total Money market funds $ 14,509 $ — $ — $ 14,509 US treasury bills — 63,994 — 63,994 Government-sponsored enterprise securities — 20,692 — 20,692 Corporate bonds and commercial paper — 35,740 — 35,740 Total $ 14,509 $ 120,426 $ — $ 134,935 10. Debt The following table summarizes loans payable, net (in thousands): As of March 31, 2026 December 31, 2025 Principal outstanding $ 45,000 $ 52,500 Unamortized debt issuance costs ( 144 ) ( 206 ) Principal outstanding, net of unamortized debt issuance costs $ 44,856 $ 52,294 Reported as: Loans payable, net, current portion $ 29,865 $ 29,812 Long-term portion of loans payable, net 14,991 22,482 $ 44,856 $ 52,294 The outstanding loans payable as of the periods presented were related to our Credit and Security Agreement (Credit Agreement) with MidCap Financial Trust (MidCap) entered into on September 27, 2019 (Closing Date) and amended on March 29, 2021 (First Amendment), February 11, 2022 (Second Amendment), July 27, 2022 (Third 19 Table of Contents Amendment), and on April 11, 2024 (Fourth Amendment). The Credit Agreement provided for a $ 60.0 million term loan credit facility. Under the Credit Agreement, as amended, the term loans were scheduled to mature on September 1, 2027, and the interest-only period was through October 1, 2025. The term loans bore interest equal to the sum of one-month Secured Overnight Financing Rate (SOFR) plus an adjustment of 0.11448 %, subject to a 4.00 % applicable floor, plus applicable margin of 6.50 %. A final payment fee of 4.25 % of principal was due at maturity date. We could make voluntary prepayments, in whole or in part, subject to certain prepayment premiums and additional interest payments. The Credit Agreement also contained certain provisions, such as event of default and change in control provisions, which, if triggered, would have required us to make mandatory prepayments on the term loan, which are subject to certain prepayment premiums and additional interest payments. The obligations under the amended Credit Agreement were secured by a perfected security interest in all of our assets including our intellectual property. Interest expense, including amortization of the debt discount and accretion of the final fees related to the Credit Agreement for the three months ended March 31, 2026 and 2025 was $ 1.4 million and $ 1.9 million, respectively. Accrued interest of $ 2.6 million and $ 2.6 million was included within other accrued liabilities in the condensed balance sheet as of March 31, 2026 and December 31, 2025, respectively. The following table presents the future minimum principal payments of the outstanding loan as of March 31, 2026 (in thousands): Remainder of 2026 $ 22,500 2027 22,500 Principal amount (Tranches 1, 2, 3 and 4) $ 45,000 The amended Credit Agreement contained certain covenants which, among others, required us to deliver financial reports at designated times of the year and maintain minimum unrestricted cash and trailing net revenues. As of March 31, 2026, we were not in violation of any covenants. On May 5, 2026, we terminated the Credit Agreement and repaid all outstanding term loans thereunder. Concurrently, we entered into a new Credit and Security Agreement with MidCap providing for a revolving credit facility (new Credit Agreement). See “Note 14 - Subsequent Events” for additional information. 11. Commitments and Contingencies Operating Leases We lease our headquarters facility in South San Francisco, California under a lease agreement that expires in July 2027 . Operating lease expense was $ 0.2 million for each of the three months ended March 31, 2026 and 2025. Cash paid for amounts included in the measurement of operating lease liabilities was $ 0.2 million for each of the three months ended March 31, 2026 and 2025. As of March 31, 2026, the weighted average remaining term was 1.33 years, and future minimum lease payments were approximately $ 0.9 million. Purchase Commitments and Obligations In the ordinary course of business, we enter into agreements with contract manufacturers to manufacture our inventory products. These agreements generally include termination provisions that may require us to pay cancellation fees, which vary depending on the timing of termination and may equal up to the full value of the work order. In October 2024, we entered into an agreement with a third-party contract manufacturer to manufacture TAVALISSE, with deliveries expected from 2026 through 2029. As of March 31, 2026, the contractual obligation not included in our financial statements related to an agreement that may potentially be subjected to cancellation fees were approximately $ 19.2 million. Of this amount, approximately $ 5.4 million is expected to be due in the remainder of 2026, and $ 9.5 million is expected to be due in 2027 and 2028. As of March 31, 2026, we have no t incurred any cancellation fees under our agreements with contract manufacturers. 20 Table of Contents Legal Contingencies From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. We are not presently a party to any material legal proceedings that, if determined adversely to us, would have a material adverse effect on our business, financial condition, results of operations, or cash flows. 12. Income Taxes The following table presents provision for income tax for the periods presented (in thousands): Three Months Ended March 31, 2026 2025 Provision for income taxes $ 3,003 $ 65 The quarterly provision for income taxes is determined by applying the estimated annual effective tax rate to the year-to-date pre-tax income, adjusted for any discrete items. The estimated annual effective tax rate is updated at the end of each reporting period. The provision for income taxes for the three months ended March 31, 2026 primarily consisted of federal income tax expense of $ 2.4 million and estimated state income taxes of $ 0.6 million . Prior to the fourth quarter of 2025, we maintained a full valuation allowance against our deferred tax assets. Although we do not expect to incur federal cash income taxes due to sufficient net operating loss (NOL) and research and development credit carryforwards, we recognized federal income tax expense based on the estimated impact of utilizing the deferred tax assets associated with such carryforwards. The total tax expense differs from the amount computed at the federal statutory rate primarily due to certain non-deductible expenses and state income taxes. For the three months ended March 31, 2025, the provision for income taxes primarily consisted of estimated state income taxes. The tax expense differs from the amount computed at the federal statutory rate primarily due to the impact of the valuation allowance and state taxes. 13. Segment Information We view our operations and manage our business as one operating segment, and our chief operating decision maker (CODM) is our chief executive officer. The following table presents segment information for the periods presented (in thousands): Three Months Ended March 31, 2026 2025 Total Revenues $ 58,818 $ 53,333 Less: Employee related expenses 21,002 19,538 Commercial related expenses 7,040 5,339 Outside clinical trial related expenses 6,927 4,371 Cost of product sales 4,606 4,409 Consultants and third-party services 4,006 3,409 Other segment items 3,352 3,494 Interest expense, net 228 1,262 Provision for income taxes 3,003 65 Segment income $ 8,654 $ 11,446 There are no reconciling items or adjustments between segment income presented above and net income as presented in our statements of operations. The CODM does not review assets in evaluating the segment performance, accordingly, such information is not presented. 21 Table of Contents For details of revenues disaggregated by category, see “Note 3 – Revenues.” Employee related expenses primarily consist of salaries, employee benefits, other employee related expenses and stock-based compensation expense. For additional details of stock-based compensation expense, see “Note 6 – Stock-Based Compensation.” Other segment items for the periods presented primarily consist of travel related expenses, business insurance, taxes and licenses, and subscription services. 14. Subsequent Events Credit Agreement with MidCap On May 5, 2026, we terminated our Credit Agreement with MidCap, which provided for a $ 60.0 million term loan credit facility. In connection with the termination, we repaid all outstanding borrowings under the term loan facility, including applicable prepayment premiums, accrued interest and final payment fees. Concurrently, we entered into a new Credit Agreement with MidCap providing for a revolving credit facility with a maximum borrowing capacity of $ 40.0 million, with an option to increase the facility to $ 60.0 million, subject to customary conditions. Availability under the revolving credit facility is subject to a borrowing base based primarily on eligible accounts receivable and inventory. The revolving credit facility has a five-year term and bears interest at a rate equal to one-month SOFR, subject to a 2.00 % floor, plus an applicable margin of 4.00 %. The obligations under the revolving credit facility are secured by a first-priority security interest in substantially all of our assets, including our intellectual property. The revolving credit facility includes customary fees, including an unused commitment fee, administrative fee and prepayment premiums during the initial period. As of the date of this filing, we had an outstanding borrowing of $ 8.0 million under the revolving credit facility. The revolving credit facility contains customary covenants that, among other things, require us to deliver financial reports at specified times and maintain minimum liquidity and trailing twelve month product revenue. The minimum product revenue covenant is tested only during periods when the liquidity falls below specified thresholds. 22 Table of Contents