RAPT Therapeutics Q1 2024 Financial Results

RAPT Therapeutics, Inc., a clinical-stage company based in South San Francisco, California, has reported its financial outcomes for the first quarter ending March 31, 2024. Specializing in developing and commercializing oral small molecule therapies for inflammatory diseases and oncology, RAPT Therapeutics is actively engaged in addressing significant medical needs through its innovative therapeutic solutions.

The company revealed that it will close and unblind its Phase 2b clinical trial of zelnecirnon (RPT193) in atopic dermatitis (AD) and its Phase 2a trial of zelnecirnon in asthma. This decision follows a serious adverse event involving liver failure necessitating a transplant in a patient during the AD trial, leading the FDA to place both trials on clinical hold in February 2024. Prior to this hold, 229 patients had been enrolled in the Phase 2b AD trial, with approximately 110 completing the 16-week dosing period.

Despite the interruption, Brian Wong, the President and CEO, maintains optimism about the potential to gather sufficient data from the trials. Wong stated, "We believe we will have enough information, even if not statistically significant, to guide our future strategy and discussions with the FDA." The company is collaborating with clinical trial sites to clean the data and anticipates concluding the analysis by the third quarter of this year. Concurrently, RAPT Therapeutics is investigating the adverse event that led to the clinical hold.

In terms of financial performance, RAPT reported a net loss of $30.5 million for the first quarter of 2024, slightly higher than the $29.3 million loss in the same period of 2023. Research and development expenses decreased to $24.8 million from $25.6 million, attributed mainly to reduced development costs for zelnecirnon, tivumecirnon, and early-stage programs, though offset by higher costs for personnel, consultants, and non-cash stock-based compensation. On the other hand, general and administrative expenses rose to $7.7 million from $6.0 million, driven by increased spending on personnel, non-cash stock-based compensation, consulting, and facilities.

As of March 31, 2024, RAPT Therapeutics held $141.6 million in cash, cash equivalents, and marketable securities, ensuring a solid financial position to support its ongoing and future endeavors.

RAPT Therapeutics’ business model revolves around its proprietary discovery and development engine, which focuses on creating highly selective small molecules to modulate key immune drivers. The company has successfully advanced two unique drug candidates, zelnecirnon (RPT193) and tivumecirnon (FLX475), targeting C-C motif chemokine receptor 4 (CCR4) for treating inflammation and cancer, respectively. Additionally, RAPT is pursuing various targets currently in the discovery stage.

Despite the clinical holds, RAPT Therapeutics is committed to addressing the significant unmet medical needs in inflammatory diseases and oncology. The company continues to leverage its robust scientific expertise and financial resources to navigate the complexities of drug development and regulatory approval processes. With a clear focus on innovation and patient care, RAPT Therapeutics aims to bring new, effective treatments to market, ultimately improving patient outcomes and quality of life.