RAPT cuts staff after zelnecirnon trial issues

RAPT Therapeutics recently announced a significant reduction in its workforce, planning to let go of approximately 40% of its employees, amounting to 47 positions. This decision follows the U.S. Food and Drug Administration's (FDA) placement of a clinical hold on two studies involving the company's CCR4 inhibitor, zelnecirnon (RPT193). The drug was being developed as an oral treatment for autoimmune diseases, providing an alternative to biologic injections.

The halted clinical trials included a Phase IIb study for atopic dermatitis and a Phase IIa study for asthma. The FDA's decision to suspend these trials came after a liver failure incident was reported during the atopic dermatitis study. In response, RAPT Therapeutics decided in May to terminate and unblind these studies. At that time, CEO Brian Wong indicated that the company had obtained enough data to guide their future strategy and facilitate discussions with the FDA, even though the findings were not statistically significant.

An investigation into the liver failure case is still ongoing. Despite the setback, RAPT Therapeutics aims to present data from these trials within the current quarter. The company anticipates that the layoffs will incur just under $1 million in restructuring charges.