RAPT Therapeutics Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

RAPT Therapeutics reported its Q4 and full-year 2024 financial results, highlighting its focus on advancing RPT904, a novel therapy for food allergy and chronic spontaneous urticaria. The company's Q4 2024 net loss widened to $53.2 million from $30.9 million in Q4 2023.

Key financial highlights include:

• R&D expenses increased to $46.5M in Q4 2024, primarily due to a $35M upfront license fee for RPT904
• Full-year 2024 net loss reached $129.9M compared to $116.8M in 2023
• Secured $143M through private placement of shares and warrants in December 2024
• Cash position of $231.1M as of December 31, 2024

The company entered a license agreement with Jemincare for RPT904, potentially worth up to $672.5M in milestone payments plus royalties. RAPT plans to initiate a Phase 2b trial for RPT904 in food allergy in H2 2025.

Positive

• Secured $143M through private placement strengthening cash position
• Strong cash position of $231.1M as of year-end
• Acquired promising RPT904 drug candidate with validated mechanism
• Clear development timeline with Phase 2b trial planned for H2 2025

Negative

• Net loss increased to $53.2M in Q4 2024 vs $30.9M in Q4 2023
• Full year losses widened to $129.9M from $116.8M
• R&D expenses increased by $6.2M year-over-year
• G&A expenses rose by $2.8M year-over-year
• Significant dilution from 176.45M new shares/warrants issued

Insights

Financial Analyst

RAPT's Q4 and full-year 2024 results reveal a strategic pivot rather than simply deteriorating financials. The company's increased net loss of $53.2 million for Q4 (up from $30.9 million in Q4 2023) was primarily driven by a $35 million upfront license fee for RPT904, not operational decay.

The company has substantially strengthened its balance sheet through a $143 million private placement at $0.85 per share, ending 2024 with $231.1 million in cash. This provides approximately 18-24 months of runway based on the current annual burn rate of roughly $130 million.

The licensing agreement with Jemincare for RPT904 represents a calculated bet with potential milestone payments up to $672.5 million plus tiered royalties. RPT904 targets IgE, a pathway already validated by approved therapies like omalizumab, potentially reducing development risk compared to novel mechanisms.

However, investors should note the extended timeline, with Phase 2b trials in food allergy not starting until H2 2025, pushing any potential revenue years into the future. The strategic refocusing from previous lead candidates to RPT904 also signals a significant pipeline shift that warrants close monitoring.

Biotech Research Specialist

RAPT's strategic refocus on RPT904 represents a targeted approach to established biological pathways with proven clinical relevance. By targeting IgE, RPT904 addresses a validated mechanism in allergic disease already successfully exploited by omalizumab, potentially offering a more streamlined regulatory pathway.

The food allergy and chronic spontaneous urticaria (CSU) markets represent substantial opportunities with significant unmet need. Food allergy affects approximately 8% of children and 10% of adults worldwide with treatment options beyond allergen avoidance. The awaited clinical data from Jemincare for CSU will be critical in determining the optimal development strategy.

The strategic shift away from zelnecirnon and tivumecirnon programs to focus resources on RPT904 suggests an internal portfolio reprioritization based on either preliminary data or market opportunity assessment. This disciplined approach to pipeline management, while potentially disappointing for followers of previous programs, demonstrates pragmatic resource allocation.

While the $35 million upfront payment is substantial for a clinical-stage biotech, the decision to license rather than discover in-house likely accelerates their timeline and reduces early development risk. The Phase 2b initiation timeline (H2 2025) indicates confidence in the asset but also reflects the methodical pace of allergic disease clinical development.

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 Reynolds
areynolds@wheelhouselsa.com

RAPT Investor Contact:
Sylvia Wheeler
swheeler@wheelhouselsa.com

RAPT THERAPEUTICS INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except share per share data) (Unaudited)
		Three Months Ended December 31,				Three Months Ended December 31,				Year Ended December 31,				Year Ended December 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.

FAQ

What were RAPT Therapeutics' Q4 2024 financial results?

RAPT reported a Q4 2024 net loss of $53.2M, with R&D expenses of $46.5M and G&A expenses of $8.0M.

How much did RAPT raise in their December 2024 private placement?

RAPT raised $143M through the sale of 100M shares at $0.85/share and pre-funded warrants for 76.45M shares.

What are the terms of RAPT's RPT904 license agreement with Jemincare?

RAPT paid $35M upfront and could pay up to $672.5M in milestones plus royalties for worldwide rights excluding China, Hong Kong, Macau and Taiwan.

When will RAPT begin Phase 2b trials for RPT904 in food allergy?

RAPT expects to initiate the Phase 2b clinical trial for RPT904 in food allergy in the second half of 2025.

What was RAPT's cash position at the end of 2024?

RAPT had $231.1M in cash, cash equivalents and marketable securities as of December 31, 2024.