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RAPT Therapeutics Reports Fourth Quarter and Full Year 2024 Financial Results

1. RAPT reported a fourth-quarter net loss of $53.2 million for 2024. 2. The company is advancing RPT904 development for food allergies in 2025. 3. RAPT entered a $35 million license agreement for RPT904 with Jemincare. 4. Cash reserves reached $231.1 million, increasing from $47.5 million in 2023. 5. RAPT plans Phase 2b trial for RPT904, awaiting data from partner Jemincare.

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Why Bullish?

While losses increased, the focus on promising RPT904 positions RAPT favorably. Previous instances demonstrate RAPT's stock potential post-approval announcements.

How important is it?

The financial results show increasing R&D investment, highlighting commitment to growth. The license agreement signifies strategic partnerships, increasing RAPT's market positioning.

Why Long Term?

The success of RPT904's clinical trials and market entry could significantly affect RAPT's long-term valuation, similar to other biotech firms that gained post-FDA approvals.

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March 06, 2025 08:00 ET  | Source: RAPT Therapeutics, Inc. SOUTH SAN FRANCISCO, Calif., March 06, 2025 (GLOBE NEWSWIRE) -- RAPT Therapeutics, Inc. (Nasdaq: RAPT) (“RAPT” or the “Company”) is a clinical-stage immunology-based biopharmaceutical company focused on discovering, developing and commercializing novel therapies for patients living with inflammatory and immunological diseases, today reported financial results for the fourth quarter and year ended December 31, 2024. “Our focus for 2025 will be on advancing development of RPT904, a novel, potential best-in-class option to treat the large and underserved population of patients suffering from food allergy and chronic spontaneous urticaria,” said Brian Wong, President and CEO of RAPT. “We believe RPT904 can be a differentiated product to treat these diseases by targeting IgE, an approach validated by omalizumab. We expect to initiate a Phase 2b clinical trial for RPT904 in food allergy in the second half of 2025 and await clinical data later this year from our partner Jemincare to guide our development strategy in CSU.” Financial Results for the Fourth Quarter and Year Ended December 31, 2024 Fourth Quarter Ended December 31, 2024 Net loss for the fourth quarter of 2024 was $53.2 million, compared to $30.9 million for the fourth quarter of 2023. Research and development expenses for the fourth quarter of 2024 were $46.5 million, compared to $26.8 million for the same period in 2023. The increase in research and development expenses was primarily due to the $35.0 million upfront license fee for RPT904, partially offset by lower development costs related to zelnecirnon, tivumecirnon and early-stage programs, as well as decreased expenses for personnel, professional services, non-cash stock-based compensation and lab supplies. General and administrative expenses for the fourth quarter of 2024 were $8.0 million, compared to $6.5 million for the same period in 2023. The increase in general and administrative expenses was primarily due to increases in expenses for professional services, non-cash stock-based compensation, personnel and facilities. In December 2024, the Company entered into a license agreement with Shanghai Jemincare Pharmaceutical Co., Ltd. (“Jemincare”), a company incorporated in the People’s Republic of China, under which the Company obtained exclusive rights to RPT904 throughout the world, excluding mainland China, Hong Kong, Macau and Taiwan. As consideration for those rights, the Company paid a $35.0 million upfront license fee and could pay up to $672.5 million in additional milestone payments, as well as tiered royalty payments (at percentages ranging from high single-digit to low double-digit) on future net sales. Also in December 2024, the Company sold through a private placement to a select group of accredited investors 100,000,000 shares of common stock at a price of $0.85 per share and pre-funded warrants to purchase 76,452,000 shares of common stock at a purchase price of $0.8499 per pre-funded warrant, resulting in net proceeds of $143.0 million after deducting offering expenses. Year Ended December 31, 2024 Net loss for the year ended December 31, 2024 was $129.9 million, compared to $116.8 million for the same period in 2023. Research and development expenses for the year ended December 31, 2024 were $107.2 million, compared to $101.0 million for the same period in 2023. The increase in research and development expenses was primarily due to the $35.0 million upfront license fee for RPT904 and an increase in non-cash stock-based compensation expense, partially offset by lower development costs related to zelnecirnon, tivumecirnon and early-stage programs, as well as decreased expenses for personnel, professional services and lab supplies. General and administrative expenses for the year ended December 31, 2024 were $28.9 million, compared to $26.1 million for the same period in 2023. The increase in general and administrative expenses was primarily due to increased expenses for non-cash stock-based compensation, consultants, personnel, and facilities, partially offset by decrease in expenses for insurance premiums. As of December 31, 2024, the Company had cash and cash equivalents and marketable securities of $231.1 million. About RAPT Therapeutics, Inc. RAPT Therapeutics, Inc. (“RAPT” or the “Company”) is a clinical-stage immunology-based biopharmaceutical company focused on discovering, developing and commercializing novel therapies for patients living with inflammatory and immunological diseases. Utilizing our deep and proprietary expertise in immunology, we develop novel therapies that are designed to modulate the critical immune responses underlying these diseases. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimates,” “expects,” “will” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future performances or achievements expressed or implied by the forward-looking statements. Each of these statements is based only on current information, assumptions and expectations that are inherently subject to change and involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the therapeutic potential of RAPT’s product candidates, the timing of the initiation of or data from clinical trials, the market opportunity for RAPT’s product candidates, potential milestone and royalty payments and other statements that are not historical fact. Many factors may cause differences between current expectations and actual results, including unexpected or unfavorable safety or efficacy data observed during clinical studies, preliminary data and trends that may not be predictive of future data or results or that may not demonstrate safety or efficacy or lead to regulatory approval, clinical trial site activation or enrollment rates that are lower than expected, unanticipated or greater than anticipated impacts or delays due to macroeconomic and geopolitical conditions (including the long-term impacts of ongoing overseas conflicts, fluctuations in inflation and interest rates and other economic uncertainty), changes in expected or existing competition, changes in the regulatory environment, the uncertainties and timing of the regulatory approval process and the sufficiency of RAPT’s cash resources. Detailed information regarding risk factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in RAPT’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 6, 2025 and subsequent filings made by RAPT with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. RAPT disclaims any obligation to update these forward-looking statements, except as required by law. RAPT Media Contact:Aljanae Reynoldsareynolds@wheelhouselsa.com RAPT Investor Contact:Sylvia Wheelerswheeler@wheelhouselsa.com RAPT THERAPEUTICS INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(In thousands, except share per share data)(Unaudited)   Three Months EndedDecember 31,  Three Months EndedDecember 31,  Year EndedDecember 31,  Year EndedDecember 31,   2024  2023  2024  2023 Operating expenses:            Research and development  46,456   26,764   107,217   101,002 General and administrative  8,009   6,453   28,884   26,060 Total operating expenses  54,465   33,217   136,101   127,062 Loss from operations  (54,465)  (33,217)  (136,101)  (127,062)Other income, net  1,216   2,341   6,236   10,264 Net loss $(53,249) $(30,876) $(129,865) $(116,798)Other comprehensive income (loss):            Foreign currency translation loss  —   —   —   (655)Unrealized gain (loss) on marketable securities  (57)  224   (53)  784 Total comprehensive loss $(53,306) $(30,652) $(129,918) $(116,669)Net loss per share, basic and diluted $(1.14) $(0.80) $(3.19) $(3.05)Weighted average number of shares used in computing net loss per share, basic and diluted  46,687,525   38,383,867   40,761,143   38,338,161  RAPT THERAPEUTICS, INC.CONSOLIDATED BALANCE SHEETS(In thousands)   December 31,2024  December 31,2023 Assets (Unaudited)  (1) Current assets:      Cash and cash equivalents $169,735  $47,478 Marketable securities  61,320   111,384 Prepaid expenses and other current assets  4,181   2,920 Total current assets  235,236   161,782 Property and equipment, net  1,367   2,448 Operating lease right-of-use assets  3,333   5,228 Other assets  389   3,871 Total assets $240,325  $173,329 Liabilities and stockholders’ equity      Current liabilities:      Accounts payable $1,275  $5,176 Accrued expenses  9,597   14,103 License fees payable  35,000   — Operating lease liabilities, current  2,422   2,448 Other current liabilities  57   109 Total current liabilities  48,351   21,836 Operating lease liabilities, non-current  2,070   4,458 Total liabilities  50,421   26,294 Commitments      Stockholders’ equity:      Preferred stock  —   — Common stock  13   3 Additional paid-in capital  804,388   631,611 Accumulated other comprehensive gain  50   103 Accumulated deficit  (614,547)  (484,682)Total stockholders’ equity  189,904   147,035 Total liabilities and stockholders’ equity $240,325  $173,329  (1)    The consolidated balance sheet for December 31, 2023 has been derived from audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

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