Rapport, J&J Neuroscience Spinout, First Biotech to Outline Summer IPO Plans

Rapport Therapeutics, a biotech firm launched by Third Rock Ventures in March 2023, is preparing to enter the Nasdaq stock market. Despite the uncertain environment for biotech IPOs, the Boston and San Diego-based company sees potential in going public.

The company emerged with $100 million in initial funding and has since attracted an additional $150 million from new and existing investors, including Third Rock Ventures, Arch Venture Partners, and Johnson & Johnson Innovation – JJDC. CEO Abe Ceesay has previously expressed confidence in the commitment of these investors for future financing rounds. Nevertheless, Rapport has opted to advance to the public market.

Rapport Therapeutics was created to advance the research of molecular neuroscientist Dr. David Bredt, who has a history of leading neuroscience research at Eli Lilly and Johnson & Johnson before assuming the role of chief scientific officer at Rapport. Dr. Bredt's work focuses on receptor-associated proteins (RAPs), which regulate receptor expression. The company employs genomics, protein science, and brain imaging technologies to identify RAPs for use in precision neuromedicines. This approach aims to target specific receptors in neuroanatomical regions to treat various conditions effectively.

One of the company's key assets is RAP-219, a drug candidate targeting TARPg8 AMPAR receptors. This program has already completed two phase 1 trials in healthy volunteers, setting the stage for phase 2 trials aimed at treating focal epilepsy, peripheral neuropathic pain, and bipolar disorder, among other conditions. Additionally, the company is planning a multiple-ascending dose trial for a long-acting injectable form of RAP-219. Another program, RAP-199, is also slated to enter clinical trials for the first time using the IPO proceeds.

Beyond these clinical-stage programs, Rapport has preclinical initiatives focusing on nicotinic acetylcholine receptors for the potential treatment of chronic pain and hearing disorders.

In a recent filing with the Securities and Exchange Commission, Rapport did not disclose the estimated share price or the total amount it aims to raise from the IPO. However, the company has outlined plans to utilize the funds raised to advance the clinical development of its key programs and further its research initiatives.

The decision to proceed with an IPO comes despite the mixed performance of biotech companies that went public earlier in the year. While many received positive initial market reactions, their valuations have generally declined. Notably, CG Oncology is the only company from the early 2023 IPO wave still trading above its initial offering price. CG Oncology's IPO was particularly significant, raising $380 million, the highest amount among biotech firms this year.

Rapport's decision to go public aligns with the views of Medicxi Partner Francesco De Rubertis, who recently predicted that the biotech IPO market would see a resurgence in the summer. The company's move signals a cautious optimism and willingness to navigate the current market conditions in hopes of securing the necessary capital to advance its innovative therapies.

By leveraging advanced scientific techniques and an experienced leadership team, Rapport Therapeutics aims to make significant strides in the field of precision neuromedicines, seeking to address unmet medical needs and improve patient outcomes through targeted therapies.