Rapport Therapeutics Q2 Financials and Business Update

Rapport Therapeutics, Inc., a clinical-stage biotechnology firm, recently released its financial results for the second quarter of 2024 and provided a business update. The company, listed on Nasdaq under RAPP, is focused on developing small molecule medicines for central nervous system (CNS) disorders. This update follows their recent initial public offering (IPO), which raised $174.4 million in gross proceeds, including the underwriters’ option to purchase additional shares and a concurrent private placement.

CEO Abraham N. Ceesay highlighted the company’s commitment to advancing its precision neuroscience pipeline. The lead product candidate, RAP-219, is on track for several clinical trials. Rapport plans to initiate a Phase 2a trial for RAP-219 in focal epilepsy in the third quarter of 2024, with results expected by mid-2025. Additionally, the company will start two proof-of-concept trials for RAP-219: one for peripheral neuropathic pain in the second half of 2024 and another for bipolar disorder in 2025.

RAP-219 targets TARPγ8, a receptor associated with the neuronal AMPAR, a key target for epilepsy. Previous trials have shown that RAP-219 is well-tolerated with no serious adverse events. A second multiple ascending dose (MAD-2) trial is underway, focusing on dosing regimens for bipolar disorder treatment, with results anticipated in the latter half of 2024. Moreover, a Phase 1 PET trial has begun to confirm brain target receptor occupancy, with results expected in the first half of 2025. The company is also developing a long-acting injectable formulation of RAP-219, aiming to provide a more convenient and potentially more effective treatment for patients.

In addition to the focal epilepsy trial, the company is progressing with a Phase 2a trial for peripheral neuropathic pain, with data presented at the International Association for the Study of Pain (IASP) 2024 World Congress demonstrating the analgesic effects of TARPγ8 AMPAR NAM across various preclinical pain models.

For bipolar disorder, a Phase 2a trial is planned for 2025, targeting patients with acute mania. The company is also advancing another molecule, RAP-199, with distinct chemical and pharmacokinetic properties, with a Phase 1 trial expected in the first half of 2025. Furthermore, two RAP-enabled discovery-stage programs are in progress, focusing on chronic pain and hearing loss.

Financially, Rapport reported a net loss of $18.1 million for the second quarter of 2024, up from $6.4 million in the same period the previous year. Research and development expenses also rose to $15.7 million from $4.7 million, driven by clinical development and pipeline progression costs. General and administrative expenses increased to $5.1 million from $1.9 million, largely due to the costs associated with becoming a public company.

As of June 30, 2024, Rapport had $336.1 million in cash, cash equivalents, and short-term investments, excluding restricted cash. The increase from $193.2 million as of March 31, 2024, is primarily due to the completion of the IPO and private placement. This financial position is expected to fund the company’s operations until the end of 2026. The net proceeds from the IPO and private placement were $157.6 million after deductions.

RAP-219 is notable for its potential to offer a differentiated clinical profile, targeting TARPγ8, which is expressed in specific brain regions like the hippocampus, a focal site for epilepsy. This targeted approach aims to improve activity, tolerability, and therapeutic index, potentially offering sustained benefits without intolerable side effects compared to traditional antiseizure medications.

Rapport Therapeutics continues to focus on its mission to develop precision neuromedicines for CNS disorders, leveraging its RAP technology platform to overcome the limitations of conventional neurology drug discovery. The company’s pipeline includes RAP-219 for focal epilepsy, peripheral neuropathic pain, and bipolar disorder, with additional programs targeting chronic pain and hearing disorders.