RAPT Therapeutics Reports Fourth Quarter and Year End 2020 Financial Results

Rhea-AI Summary

RAPT Therapeutics (Nasdaq: RAPT) announced its financial results for Q4 and the year ending December 31, 2020. The company reported a net loss of $12.7 million for Q4 2020, slightly better than the $13.2 million loss in Q4 2019. Annual net loss increased to $52.9 million from $43 million in 2019. Research and development expenses rose to $45.5 million in 2020, driven by clinical trial costs for FLX475 and RPT193. As of December 31, 2020, cash and equivalents totaled $111.5 million. Key clinical advancements were noted for both lead programs, with upcoming data readouts expected in 2021.

Positive

• Key advancements in clinical development for FLX475 and RPT193.
• Reported early evidence of clinical activity for FLX475, leading to the advancement of multiple cohorts in trials.
• Strong cash position with $111.5 million in cash and equivalents as of December 31, 2020.

Negative

• Increased net loss for 2020 at $52.9 million, up from $43 million in 2019.
• Rising research and development expenses totaling $45.5 million, indicating higher operational costs.

SOUTH SAN FRANCISCO, Calif., March 11, 2021 (GLOBE NEWSWIRE) -- RAPT Therapeutics, Inc. (Nasdaq: RAPT), a clinical-stage, immunology-based biopharmaceutical company focused on discovering, developing and commercializing oral small molecule therapies for patients with significant unmet needs in oncology and inflammatory diseases, today reported financial results for the fourth quarter and year ended December 31, 2020.

“In 2020, we achieved important advancements in clinical development for our two lead programs: FLX475 in oncology and RPT193 in inflammatory diseases,” said Brian Wong, M.D., Ph.D., President and Chief Executive Officer of RAPT Therapeutics. “In November, we reported early evidence of clinical activity for FLX475, both as monotherapy and in combination with pembrolizumab, in multiple tumor types. These data helped us determine advancement of several cohorts in our multi-cohort, multi-indication Phase 1/2 trial. For RPT193, we continued enrolling our Phase 1b study of RPT193 in atopic dermatitis over the course of 2020 despite a brief pause early in the year because of the pandemic. Today, we are well positioned for key data readouts for both RPT193 and FLX475. We plan to report on the Phase 1b trial for RPT193 in the first half of 2021 and provide an update in the second half of 2021 on additional data generated with FLX475 in multiple cohorts that have sufficiently matured.”

Financial Results for the Fourth Quarter and Year Ended December 31, 2020

Fourth Quarter Ended December 31, 2020
Net loss for the fourth quarter of 2020 was $12.7 million, compared to $13.2 million for the fourth quarter of 2019.

Research and development expenses for the fourth quarter of 2020 were $10.9 million, compared to $10.2 million for the same period in 2019 due to increased clinical trial costs for FLX475 and RPT193, increased personnel costs and stock-based compensation expense and an increase in preclinical program costs, offset by a decrease in laboratory supplies spend.

General and administrative expenses for the fourth quarter of 2020 were $3.5 million, compared to $2.6 million for the same period of 2019. The increase was primarily due to increases in stock-based compensation expense, personnel costs, legal and accounting fees and insurance expense, offset by a decrease in consulting costs.

Year Ended December 31, 2020
Net loss for the year ended December 31, 2020 was $52.9 million, compared to $43.0 million for the same period in 2019.

Research and development expenses for the year ended December 31, 2020 were $45.5 million, compared to $34.9 million for the same period in 2019. The increase was primarily due to an increase in clinical trial costs relating to FLX475 and RPT193, increased preclinical program costs as well as increases in stock-based compensation and personnel expenses, offset by decreases in lab supplies and travel costs.

General and administrative expenses for the year ended December 31, 2020 were $12.8 million, compared to $8.7 million for the same period of 2019. The increase in general and administrative expenses was primarily due to increases in stock-based compensation expense, personnel costs and costs associated with our public company status, offset by a decrease in professional fee and travel costs.

As of December 31, 2020, the Company had cash and cash equivalents and marketable securities of $111.5 million.

About RAPT Therapeutics, Inc.
RAPT Therapeutics is a clinical stage immunology-based biopharmaceutical company focused on discovering, developing and commercializing oral small molecule therapies for patients with significant unmet needs in oncology and inflammatory diseases. Utilizing its proprietary discovery and development engine, the Company is developing highly selective small molecules designed to modulate the critical immune drivers underlying these diseases. RAPT has discovered and advanced two unique drug candidates, FLX475 and RPT193, each targeting C-C motif chemokine receptor 4 (CCR4), for the treatment of cancer and inflammation, respectively. The Company is also pursuing a range of targets that are in the discovery stage of development.

Forward-Looking Statements
This press release contains 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 clinical development progress and the timing of results from clinical trials of FLX475 and RPT193. 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 Form 10-K filed with the Securities and Exchange Commission on March 11, 2021 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.

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 and per share data)
		Three Months Ended								Year Ended
		December 31,								December 31,
			2020				2019				2020				2019
Revenue		$	1,302			$	—			$	5,042			$	—
Operating expenses:
Research and development			10,904				10,190				45,485				34,910
General and administrative			3,483				2,625				12,771				8,719
Total operating expenses			14,387				12,815				58,256				43,629
Loss from operations			(13,085	)			(12,815	)			(53,214	)			(43,629	)
Other income, net			549				259				1,312				1,292
Net loss before taxes			(12,536	)			(12,556	)			(51,902	)			(42,337	)
Provision for income taxes			199				660				990				660
Net loss		$	(12,735	)		$	(13,216	)		$	(52,892	)		$	(42,997	)
Other comprehensive income (loss):
Foreign currency translation adjustment			(184	)			7				(249	)			24
Unrealized gain on marketable securities			(67	)			—				52				—
Total comprehensive loss		$	(12,986	)		$	(13,209	)		$	(53,089	)		$	(42,973	)
Net loss per share, basic and diluted		$	(0.52	)		$	(0.87	)		$	(2.19	)		$	(9.89	)
Weighted average number of shares used in computing net loss per share, basic and diluted			24,582,616				15,255,118				24,134,305				4,346,400

RAPT THERAPEUTICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
		December 31,
			2020				2019
Assets
Current assets:
Cash and cash equivalents		$	24,918			$	77,383
Marketable securities			86,592				—
Prepaid expenses and other current assets			4,088				3,123
Total current assets			115,598				80,506
Property and equipment, net			2,982				3,707
Other assets			389				389
Total assets		$	118,969			$	84,602
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$	2,383			$	1,143
Accrued expenses			4,935				3,642
Deferred revenue, current			4,096				4,000
Other current liabilities			328				471
Total current liabilities			11,742				9,256
Deferred revenue, net of current portion			863				—
Deferred rent, net of current portion			2,185				2,225
Total liabilities			14,790				11,481
Commitments
Stockholders' equity:
Preferred stock, $0.0001 par value: 50,000,000 shares authorized; no shares issued and outstanding at December 31, 2020 and 2019			—				—
Common stock, $0.0001 par value; 500,000,000 shares authorized; 24,773,361 and 21,833,037 shares issued and outstanding at December 31, 2020 and 2019, respectively			2				2
Additional paid-in capital			319,196				235,049
Accumulated other comprehensive income (loss)			(177	)			20
Accumulated deficit			(214,842	)			(161,950	)
Total stockholders' equity			104,179				73,121
Total liabilities and stockholders' equity		$	118,969			$	84,602

FAQ

What were RAPT Therapeutics' Q4 2020 financial results?

RAPT Therapeutics reported a net loss of $12.7 million for Q4 2020, compared to a loss of $13.2 million in Q4 2019.

What is RAPT's net loss for the year ended December 31, 2020?

The net loss for the year ended December 31, 2020, was $52.9 million, up from $43 million in 2019.

How much cash does RAPT Therapeutics have as of December 31, 2020?

As of December 31, 2020, RAPT Therapeutics had cash and cash equivalents totaling $111.5 million.

What are the upcoming clinical milestones for RAPT Therapeutics?

RAPT plans to report results from the Phase 1b trial of RPT193 in the first half of 2021, and updates on FLX475 later in 2021.