Rigel's Q1 loss grows by $10 million as it gears up for clinical trials

Gearing up for mid-stage clinical trials of an arthritis drug increased Rigel Pharmaceuticals Inc.'s loss to $27.3 million in the first quarter.

The South San Francisco company (NASDAQ: RIGL) lost $17.1 million a year ago in the same quarter.

Rigel had no revenue in the most-recent quarter, compared with revenue of $2.6 million from deals with Merck (NYSE: MRK) and Pfizer (NYSE: PFE) in the first quarter of 2007.

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Led by CEO and Chairman James Gower, Rigel is getting ready for two tests of its drug R788, a treatment for rheumatoid arthritis. Both those trials should start this quarter.

Rheumatoid arthritis is an autoimmune disease, where the body attacks its own joints. It differs from osteoarthritis, caused by wear and tear on the joints from use.

Gower has been chairman and CEO since January 1997 -- he worked previously at Tularik Inc. and Genentech (NYSE: DNA). His salary is $600,000 and his bonus target is 60 percent of his salary. Last year his salary was $500,000, his bonus was $300,000 and his total compensation was $2.7 million.

Rigel's accumulated deficit since it started business was $396.7 million at the end of the quarter.

Rigel's annual stockholder meeting is May 29 at its head office in South San Francisco.