RAPT Therapeutics Reports Second Quarter 2020 Financial Results

Rhea-AI Summary

RAPT Therapeutics reported a net loss of $12.4 million for Q2 2020, up from $10.6 million in Q2 2019. R&D expenses rose to $11.0 million due to clinical costs for FLX475 and RPT193, with G&A expenses slightly increasing to $2.8 million. For the six-month period, net loss was $25.5 million, compared to $19.8 million in 2019, with R&D expenses reaching $21.7 million. As of June 30, 2020, the company held cash and marketable securities worth $133.0 million. RAPT remains on track to report key clinical trial results by year-end.

Positive

• Cash and cash equivalents of $133.0 million as of June 30, 2020.
• Management anticipates reporting initial results from Phase 1/2 trial of FLX475 and Phase 1b study of RPT193 by year-end.

Negative

• Net loss increased to $12.4 million in Q2 2020 from $10.6 million in Q2 2019.
• R&D expenses climbed to $11.0 million due to rising clinical costs.
• Six-month net loss rose to $25.5 million from $19.8 million in 2019.

SOUTH SAN FRANCISCO, Calif., Aug. 13, 2020 (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 second quarter ended June 30, 2020 and provided an update on recent operational and business progress.

“We remain on track to report initial results from our Phase 1/2 trial of FLX475 later this year and to report results from our Phase 1b study of RPT193 in patients with atopic dermatitis by year end,” said Brian Wong, M.D., Ph.D., President and CEO of RAPT Therapeutics.   “We are pleased with the progress we are making in moving our programs forward and adapting our organization in the face of the COVID-19 pandemic.”

Financial Results for the Second Quarter and Six Months Ended June 30, 2020

Second Quarter Ended June 30, 2020
Net loss for the second quarter of 2020 was $12.4 million, compared to $10.6 million for the second quarter of 2019.

Research and development expenses for the second quarter of 2020 were $11.0 million, compared to $8.3 million for the same period in 2019 due to increased clinical costs for FLX475 and RPT193 as well as increased personnel costs associated with these studies and stock-based compensation expenses, offset by a decrease in lab supplies used for preclinical research.

General and administrative expenses for the second quarter of 2020 were $2.8 million, compared to $2.7 million for the same period of 2019. The slight increase was primarily due to an increase in stock-based compensation expense and costs associated with our public company status, offset by a decrease in professional fees.

Six Months Ended June 30, 2020
Net loss for the six months ended June 30, 2020 was $25.5 million, compared to $19.8 million for the same period in 2019.

Research and development expenses for the six months ended June 30, 2020 were $21.7 million, compared to $16.1 million for the same period in 2019. The increase was primarily due to increases in costs relating to the clinical development of FLX475 and RPT193 and increased preclinical program costs as well as increased stock-based compensation and personnel expenses, offset by decreases in costs relating to lab supplies used for preclinical research.

General and administrative expenses for the six months ended June 30, 2020 were $6.1 million, compared to $4.4 million for the same period of 2019. The increase in general and administrative expenses was primarily due to increased stock-based compensation expense as well as costs associated with our public company status, offset by a decrease in travel and personnel costs.

As of June 30, 2020, we had cash and cash equivalents and marketable securities of $133.0 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, including hematopoietic progenitor kinase 1 (HPK1) and general control nonderepressible 2 (GCN2), 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-Q filed with the Securities and Exchange Commission on August 13, 2020 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:
Angela Bitting
media@rapt.com
(925) 202-6211

RAPT Investor Contact:
Sylvia Wheeler
swheeler@wheelhouselsa.com

RAPT THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
			2020				2019				2020				2019
	Revenue		$	1,277			$	—			$	2,212			$	—
	Operating expenses:
	Research and development			10,986				8,267				21,669				16,137
	General and administrative			2,802				2,692				6,091				4,366
	Total operating expenses			13,788				10,959				27,760				20,503
	Loss from operations			(12,511	)			(10,959	)			(25,548	)			(20,503	)
	Other income, net			391				333				526				689
	Net loss before taxes			(12,120	)			(10,626	)			(25,022	)			(19,814	)
	Provision for income taxes			267				—				504				—
	Net loss			(12,387	)			(10,626	)			(25,526	)			(19,814	)
	Other comprehensive income (loss):
	Foreign currency translation adjustment			(199	)			2				5				2
	Unrealized gain on marketable securities			369				—				152				—
	Total comprehensive loss		$	(12,217	)		$	(10,624	)		$	(25,369	)		$	(19,812	)
	Net loss per share, basic and diluted		$	(0.51	)		$	(14.78	)		$	(1.08	)		$	(28.80	)
	Weighted average number of shares used in computing net loss per share, basic and diluted			24,336,102				719,026				23,743,058				687,870

	RAPT THERAPEUTICS, INC.
	CONDENSED CONSOLIDATED BALANCE SHEETS
	(In thousands)
		June 30,				December 31,
		2020				2019
	Assets
	Current assets:
	Cash and cash equivalents	$	28,957			$	77,383
	Marketable securities		103,993				—
	Prepaid expenses and other current assets		3,127				3,123
	Total current assets		136,077				80,506
	Property and equipment, net		3,210				3,707
	Other assets		389				389
	Total assets	$	139,676			$	84,602
	Liabilities and stockholders' equity
	Current liabilities:
	Accounts payable	$	2,381			$	1,143
	Accrued expenses		4,256				3,642
	Deferred revenue		6,013				4,000
	Other current liabilities		430				471
	Total current liabilities		13,080				9,256
	Deferred rent, net of current portion		2,210				2,225
	Deferred revenue, non-current		1,775				—
	Commitments
	Stockholders' equity:
	Preferred stock		—				—
	Common stock		2				2
	Additional paid-in capital		309,908				235,049
	Accumulated other comprehensive income		177				20
	Accumulated deficit		(187,476	)			(161,950	)
	Total stockholders' equity		122,611				73,121
	Total liabilities and stockholders' equity	$	139,676			$	84,602

 

FAQ

What were RAPT Therapeutics' earnings results for Q2 2020?

RAPT Therapeutics reported a net loss of $12.4 million for Q2 2020, an increase from $10.6 million in Q2 2019.

How did RAPT's research and development expenses change in Q2 2020?

R&D expenses increased to $11.0 million in Q2 2020, up from $8.3 million in the same period in 2019.

What is RAPT Therapeutics' financial outlook for the remainder of 2020?

RAPT expects to report initial results from its clinical trials by year-end, while facing increased operational costs.

What financial position does RAPT Therapeutics hold as of June 30, 2020?

As of June 30, 2020, RAPT Therapeutics had cash and marketable securities totaling $133.0 million.