Summary of RAPT Therapeutics Conference Call - September 15, 2025 Company Overview - RAPT Therapeutics focuses on discovering, developing, and commercializing therapeutics for inflammatory disorders, targeting multi-billion dollar markets [2][4] - The lead asset, RPT-904, is a next-generation anti-IgE antibody, in-licensed from Gemincare in China, aimed at improving upon omalizumab (Xolair) [2][6] - RPT-904 targets food allergies and chronic spontaneous urticaria, estimated at $40 billion and $5 billion markets respectively [2] Key Developments and Milestones - RPT-904 is currently in phase 2 trials, with multiple upcoming milestones [2] - The deal for RPT-904 included a $35 million upfront payment and potential milestones totaling $670 million, with worldwide rights excluding China [6][7] Market Opportunity - There are 17 million diagnosed food allergy patients in the U.S., with 3.5 million being children, indicating a significant unmet medical need [8] - Omalizumab was approved in February 2024, with over 60,000 patients already using it for food allergies, suggesting a $1 billion run rate [9] Competitive Landscape - RPT-904 is designed to have improved half-life and dosing convenience compared to omalizumab, with expectations of Q8 or Q12 week dosing [10][18] - The competitive landscape includes other IgE antibodies and novel approaches, but RAPT believes there is ample space for multiple entrants [12] Differentiation Factors - RPT-904's dosing regimen is expected to enhance patient compliance and reduce emergency room visits, which payers recognize as beneficial [15][16] - The drug aims to address high IgE, high weight patients who are currently excluded from the omalizumab label, presenting a unique market opportunity [17][19] Clinical Trials and Data - The phase IIB study is set to start before the end of the year, modeled after the OUTMATCH study for Xolair, focusing on food allergies [22] - Gemincare is conducting two phase 2 studies in China, with results expected to inform U.S. and European development [29] Financial Outlook - RAPT Therapeutics reported a cash balance of just under $170 million at the end of Q2, projected to last through the first half of 2027 [43] Future Considerations - The company is exploring the potential for a broader label that could include asthma and seasonal allergic rhinitis in the future [33] - RAPT is also developing a second-generation CCR4 antagonist, with plans to enter the clinic next year [40][41] Conclusion - RAPT Therapeutics is positioned to capitalize on significant market opportunities with RPT-904, leveraging its differentiated profile and upcoming clinical milestones to address unmet needs in the treatment of food allergies and chronic spontaneous urticaria [2][12][15]

Summary of RAPT Therapeutics FY Conference Call Company Overview - **Company**: RAPT Therapeutics (NasdaqGM:RAPT) - **Focus**: Transformative therapeutics for a range of IgE-mediated diseases, particularly food allergies and chronic spontaneous urticaria (CSU) [2][21] Pipeline and Product Development - **Lead Asset**: RPT-904, a next-generation anti-IgE antibody currently in phase 2 development [2] - **Comparison with Omalizumab**: RPT-904 preserves the Omalizumab epitope, which is critical for efficacy, unlike Ligalizumab, which failed to show superiority [5][9] - **Half-Life**: RPT-904 has a half-life of 60 days compared to Omalizumab's 26 days, allowing for less frequent dosing, which is expected to enhance patient compliance [10][12] Market Opportunity - **Food Allergy Market**: Approximately 17 million diagnosed patients in the U.S., with about 4 million being severe cases. RAPT aims for a 40-50% market share in this segment [33] - **Unmet Need**: 25-30% of food allergy patients are ineligible for Omalizumab, presenting a significant opportunity for RPT-904 [13][25] Clinical Trials - **Phase 2 Trials**: Two ongoing trials for RPT-904, one in CSU and one in asthma, with important data readouts expected [14][18] - **Trial Design**: The CSU trial involves a head-to-head comparison with Omalizumab, focusing on dosing frequency and efficacy [13][24] Differentiation Factors - **Dosing Regimen**: Less frequent dosing (Q8 or Q12 weeks) is expected to improve compliance and patient outcomes, particularly in food allergy [17][27] - **Efficacy in Omalizumab Ineligible Population**: RPT-904 aims to provide treatment options for patients excluded from Omalizumab trials, which is a significant differentiator [25][32] Financial Position - **Cash Position**: As of the end of Q2, RAPT had $170 million in cash, expected to last through the first half of 2027 [36] Upcoming Catalysts - **Data Readouts**: Anticipated results from phase 2b food allergy trial and partner trials in CSU and asthma by the end of the year [37] Conclusion - RAPT Therapeutics is strategically positioned in the IgE-mediated disease market with RPT-904, focusing on addressing unmet needs in food allergies and chronic spontaneous urticaria through innovative dosing and efficacy strategies [2][21][33]

Summary of RAPT Therapeutics Conference Call Company Overview - RAPT Therapeutics focuses on inflammatory diseases, particularly in high-value indications that can disrupt standard care in multibillion-dollar markets [4][3] - The lead asset is RPT-904, a next-generation half-life extended anti-IgE antibody, differentiated from the first-generation molecule Xolair [4][5] Key Priorities and Developments - RAPT has partnered with GeminiCare for the development of RPT-904 in China, which is completing Phase 2 trials with data expected by year-end [5][6] - The company is particularly excited about the potential of RPT-904 in treating food allergies and chronic spontaneous urticaria (CSU) [5][6] Product Differentiation - RPT-904 has a half-life of 60 days compared to Xolair's 26 days, representing over a two-fold increase [12] - The molecule shows deeper and more sustained pharmacodynamic effects, particularly in reducing free IgE levels [12][9] - Improvements in affinity and reduced immunogenicity are also noted, with a fourfold increase in affinity compared to Xolair [8][11] Market Dynamics - The food allergy market is significant, with Xolair treating over 60,000 patients in its first year of launch [6][44] - RAPT estimates that 25-30% of food allergy patients are ineligible for Xolair treatment due to high IgE levels and body weight [22][21] - RPT-904 aims to address this ineligible population with less frequent dosing options (Q12 or Q8 weeks) [23][28] Clinical Trials and Regulatory Interaction - A Phase 2b food allergy study is planned to start before the end of the year, with favorable initial interactions with the FDA [24][27] - The trial design is based on the Outmatch study, aiming for a 100-patient enrollment with a focus on Xolair-naive patients [61][32] Competitive Landscape - The market for food allergies is large, with 17 million Americans diagnosed, and RPT-904 aims to differentiate itself through less burdensome dosing and addressing the ineligible patient population [50][52] - The company is aware of potential biosimilars for Xolair entering the market but believes RPT-904's unique attributes will allow for premium pricing [53][70] Future Opportunities - RAPT is also exploring indications beyond food allergies and CSU, including seasonal allergic rhinitis, which has a large patient population [89] - The company is developing next-generation oral molecules targeting Th2-driven disorders, indicating a broader pipeline strategy [99] Financial Position - RAPT reported a cash position of just under $170 million, expected to last through 2027, covering the timeline until the anticipated food allergy top-line readout [103] Conclusion - RAPT Therapeutics is strategically positioned in the inflammatory disease market with a focus on innovative treatments for food allergies and CSU, backed by promising clinical data and a solid financial runway [4][103]

Financial Data and Key Metrics Changes - The company reported $170 million in cash at the end of Q2, which is expected to last through the second half of 2027, coinciding with the anticipated Phase IIb food allergy readout top-line data [73]. Business Line Data and Key Metrics Changes - RAPT Therapeutics is focused on RPT-904, a next-generation long-acting anti-IgE antibody, which is in Phase II development and targets food allergies and chronic spontaneous urticaria (CSU) [4][6]. - The food allergy market is valued at $40 billion in the United States, while CSU represents a $5 billion market [6]. Market Data and Key Metrics Changes - Xolair, a competitor drug, has approximately 60,000 patients in the food allergy indication and is growing rapidly, indicating a significant unmet medical need in this area [10][11]. - There are about 17 million food allergy patients in the United States, comparable to the number of atopic dermatitis patients [11]. Company Strategy and Development Direction - The company aims to differentiate RPT-904 from Xolair by offering similar efficacy with less frequent dosing (Q8 or Q12 weeks compared to Xolair's Q2 or Q4 weeks) [34][35]. - RAPT Therapeutics plans to initiate a Phase 2b study for food allergies before the end of the year, following a design similar to the OUTMATCH study that led to Xolair's approval [60][65]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of RPT-904 to meet the needs of patients currently ineligible for Xolair therapy, filling a significant gap in treatment options [33]. - The company is optimistic about the upcoming data from GeminCare's studies, which could accelerate their timeline to market for CSU [40][46]. Other Important Information - The patent for omalizumab (Xolair) is set to expire later this year, leading to expectations of price erosion for the branded product [15][16]. - RAPT Therapeutics is collaborating with GeminCare, a multibillion-dollar Chinese pharmaceutical company, to support the development of RPT-904 [38]. Q&A Session Summary Question: What is the expected market presence for ZOLIER biosimilars? - The patent on omalizumab expires later this year, with biosimilars expected to enter the market in the latter part of next year, leading to anticipated price erosion of branded Omalizumab [15][16]. Question: What is the strategy for positioning RPT-904 against ZOLIER biosimilars? - The company aims for omalizumab-like efficacy and safety with dosing every eight weeks as the base case, and every twelve weeks as the upside case [34][35]. Question: What does success look like for the CSU readout? - Success is defined as achieving omalizumab-like efficacy at Q8 week dosing, with the potential for Q12 week dosing to command a premium price [52]. Question: What is the rationale for conducting a PKPD study? - The PKPD study aims to confirm that the pharmacokinetics and pharmacodynamics observed in healthy volunteers will extrapolate to patients with higher IgE levels [42]. Question: What is the expected timeline for the Phase IIb food allergy study? - The Phase IIb study is on track to start before the end of the year, with initial interactions with the FDA having gone well [65].

Core Insights - RAPT Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for inflammatory and immunological diseases [2] Group 1: Company Overview - RAPT Therapeutics specializes in discovering, developing, and commercializing novel therapies aimed at modulating immune responses related to inflammatory and immunological diseases [2] - The company leverages proprietary expertise in immunology to create innovative treatment options for patients [2] Group 2: Upcoming Events - RAPT management will participate in several investor conferences in September 2025, including: - 2025 Wells Fargo Healthcare Conference on September 3, 2025, at 12:45 p.m. ET [3] - Cantor Global Healthcare Conference on September 4, 2025, at 1:00 p.m. ET [3] - H.C. Wainwright 27th Annual Global Investment Conference on September 9, 2025, at 9:00 a.m. ET [3] - Stifel 2025 Virtual Immunology & Inflammation Forum on September 15, 2025, at 9:30 a.m. ET [3] - Live webcasts and archived recordings of these events will be available on the RAPT Therapeutics website [1]

Group 1 - Rapt Therapeutics (RAPT) shares have increased by 0.5% over the past four weeks, closing at $11.74, with a mean price target of $23.6 indicating a potential upside of 101% [1] - The mean estimate consists of five short-term price targets with a standard deviation of $12.24, where the lowest estimate is $9.00 (23.3% decline) and the highest is $38.00 (223.7% increase) [2] - Analysts show strong agreement in revising earnings estimates higher, with the Zacks Consensus Estimate for the current year increasing by 13.2% over the past month [11][12] Group 2 - RAPT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - The consensus price target may not be a reliable indicator of the stock's potential gain, but it does suggest a positive direction for price movement [14]

Group 1 - Rapt Therapeutics (RAPT) has recently experienced a "golden cross" event, indicating a potential bullish breakout as its 50-day simple moving average has crossed above its 200-day simple moving average [1][2] - The golden cross pattern typically suggests a positive trend reversal, starting from a price decline, followed by the shorter moving average crossing above the longer one, and finally maintaining upward momentum [2][3] - RAPT has seen a rally of 9.5% over the past four weeks and currently holds a 2 (Buy) rating on the Zacks Rank, suggesting it may be poised for further gains [4] Group 2 - There have been two upward revisions in RAPT's earnings expectations over the past 60 days, with no downward changes, indicating a positive sentiment among investors [4][6] - The Zacks Consensus Estimate for RAPT has also moved up, reinforcing the bullish outlook for the company [4][6]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed financial statements provide a detailed financial overview for the periods ended June 30, 2025, and December 31, 2024 Condensed Balance Sheets as of June 30, 2025 and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Cash and cash equivalents | $41,886 | $169,735 | $(127,849) | (75.3)% | | Marketable securities | $127,061 | $61,320 | $65,741 | 107.2% | | Total current assets | $172,859 | $235,236 | $(62,377) | (26.5)% | | Total assets | $178,410 | $240,325 | $(61,915) | (25.8)% | | Total current liabilities | $13,043 | $48,351 | $(35,308) | (73.0)% | | Total liabilities | $14,002 | $50,421 | $(36,419) | (72.2)% | | Total stockholders' equity | $164,408 | $189,904 | $(25,496) | (13.4)% | Condensed Statements of Operations and Comprehensive Loss for the Three- and Six-Months Ended June 30, 2025 and 2024 | Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change ($) | Change (%) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change ($) | Change (%) | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------- | :--------- | :--------------------------- | :--------------------------- | :--------- | :--------- | | Research and development | $12,340 | $22,640 | $(10,300) | (45)% | $24,382 | $47,421 | $(23,039) | (49)% | | General and administrative | $7,195 | $6,690 | $505 | 8% | $14,418 | $14,427 | $(9) | * | | Total operating expenses | $19,535 | $29,330 | $(9,795) | (33)% | $38,800 | $61,848 | $(23,048) | (37)% | | Loss from operations | $(19,535) | $(29,330) | $9,795 | (33)% | $(38,800) | $(61,848) | $23,048 | (37)% | | Other income, net | $1,892 | $1,667 | $225 | 13% | $3,992 | $3,664 | $328 | 9% | | Net loss | $(17,643) | $(27,663) | $10,020 | (36)% | $(34,808) | $(58,184) | $23,376 | (40)% | | Net loss per share, basic and diluted | $(0.65) | $(5.69) | $5.04 | (88.6)% | $(1.29) | $(12.01) | $10.72 | (89.3)% | Condensed Statements of Stockholders' Equity for the Six-Months Ended June 30, 2025 and 2024 | Metric (in thousands) | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :-------------------- | :---------------- | :------------- | :------------ | | Total Stockholders' Equity | $189,904 | $177,372 | $164,408 | | Net loss | $(17,165) | $(17,643) | $(34,808) (total for 6 months) | | Stock-based compensation | $4,648 | $4,537 | $9,185 (total for 6 months) | | Issuances of common stock under employee stock plans | — | $161 | $161 (total for 6 months) | Condensed Statements of Cash Flows for the Six-Months Ended June 30, 2025 and 2024 | Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | | :---------------------- | :----------------------------- | :----------------------------- | :--------- | | Operating activities | $(63,685) | $(55,238) | $(8,447) | | Investing activities | $(64,325) | $35,100 | $(99,425) | | Financing activities | $161 | $9,737 | $(9,576) | | Net decrease in cash and cash equivalents | $(127,849) | $(10,401) | $(117,448) | | Cash and cash equivalents at end of period | $41,886 | $37,077 | $4,809 | Notes to Condensed Financial Statements 1. Organization - RAPT Therapeutics is a clinical-stage immunology-based biopharmaceutical company focused on discovering, developing, and commercializing novel therapies for inflammatory, immunological diseases, and oncology[21](index=21&type=chunk) - The company's lead drug candidate, RPT904, is a half-life extended monoclonal antibody for allergic diseases, licensed worldwide (excluding Jemincare Territory)[21](index=21&type=chunk)[64](index=64&type=chunk) - Tivumecirnon is an oral small-molecule CCR4 antagonist for oncology, with worldwide rights (excluding Hanmi Territory)[21](index=21&type=chunk)[65](index=65&type=chunk) - Development of zelnecirnon, a small molecule CCR4 antagonist for inflammatory disease, **ceased in November 2024** due to a serious adverse event of liver failure in a Phase 2 trial[21](index=21&type=chunk)[66](index=66&type=chunk) - The company incurred a **net loss of $34.8 million** and used **$63.7 million of cash** in operations for the six months ended June 30, 2025[22](index=22&type=chunk) - As of June 30, 2025, the company had **$168.9 million in cash, cash equivalents, and marketable securities**, and **$159.8 million in working capital**[22](index=22&type=chunk) - Management believes current cash and cash equivalents and marketable securities will provide **sufficient funds for at least 12 months** from the filing date, but additional capital will be needed for research and development activities[23](index=23&type=chunk) 2. Summary of Significant Accounting Policies - The company effected a **1-for-8 reverse stock split** on June 16, 2025, retroactively adjusting all share and per-share data in the financial statements[25](index=25&type=chunk)[67](index=67&type=chunk) - The company operates in one segment, with performance assessed based on cash runway and net loss[26](index=26&type=chunk)[27](index=27&type=chunk) - Marketable securities are classified as available-for-sale, carried at estimated fair value, with unrealized gains and losses reported as a component of accumulated other comprehensive income (loss)[31](index=31&type=chunk) - The company retrospectively adopted ASU 2023-07 (Segment Reporting) on January 1, 2024, with no material impact on its financial statements[37](index=37&type=chunk) - The company is currently evaluating the impact of ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures), effective for fiscal years beginning after December 15, 2026, and December 15, 2024, respectively[38](index=38&type=chunk)[39](index=39&type=chunk) 3. Fair Value Measurements Fair Value of Financial Assets | Financial Assets (in thousands) | Fair Value Hierarchy Level | Amortized Cost (June 30, 2025) | Fair Value (June 30, 2025) | Amortized Cost (Dec 31, 2024) | Fair Value (Dec 31, 2024) | | :------------------------------ | :------------------------- | :----------------------------- | :------------------------- | :----------------------------- | :------------------------- | | Money market funds | Level 1 | $12,252 | $12,252 | $152,776 | $152,776 | | Corporate debt | Level 2 | $31,084 | $31,087 | $17,772 | $17,790 | | Asset-backed securities | Level 2 | $6,373 | $6,375 | $3,820 | $3,825 | | Commercial paper | Level 2 | $56,613 | $56,611 | $16,795 | $16,795 | | U.S. government agency securities | Level 2 | $62,365 | $62,378 | $39,743 | $39,770 | | Total Marketable Securities | | $127,045 | $127,061 | $61,270 | $61,320 | - As of June 30, 2025, **unrealized losses on marketable securities totaled $11,000**, primarily due to interest rate changes rather than credit losses[44](index=44&type=chunk) Maturity Profile of Marketable Securities | Maturity Profile (in thousands) | June 30, 2025 | | :------------------------------ | :------------ | | Maturing in one year or less | $120,016 | | Maturing after one year through five years | $7,045 | | Total | $127,061 | 4. Property and Equipment Net Property and Equipment | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Laboratory equipment | $7,078 | $7,035 | | Leasehold improvements | $3,295 | $3,295 | | Computer equipment | $688 | $707 | | Furniture and fixtures | $411 | $411 | | Total property and equipment | $11,472 | $11,448 | | Less accumulated depreciation and amortization | $(10,502) | $(10,081) | | Property and equipment, net | $970 | $1,367 | - Depreciation and amortization expense was **$0.5 million** for the six months ended June 30, 2025, compared to **$0.6 million** for the same period in 2024[46](index=46&type=chunk) 5. Accrued Expenses Composition of Accrued Expenses | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Accrued research and development expenses | $2,361 | $1,239 | | Accrued compensation | $3,346 | $6,723 | | Accrued professional and consulting services | $747 | $1,493 | | Other | $129 | $142 | | Total accrued expenses | $6,583 | $9,597 | 6. Common Stock Shares Reserved for Future Issuance | Shares Reserved for Future Issuance (as of June 30, 2025) | Number of Shares | | :------------------------------------------------------- | :--------------- | | Options issued and outstanding (2025, 2019, 2015 Plans) | 3,391,339 | | Shares available for future grants (2025 Inducement Plan) | 62,500 | | Shares available for future grants (2025 Equity Incentive Plan) | 1,017,658 | | Pre-funded warrants issued and outstanding | 10,425,428 | | Shares reserved (2019 Employee Stock Purchase Plan) | 556,346 | | Total | 15,453,271 | - No shares were sold under the ATM Sales Agreement during the three and six months ended June 30, 2025. As of June 30, 2025, **$140.6 million of common stock remained available** for future issuance under the ATM Sales Agreement[49](index=49&type=chunk) 7. Stock-Based Compensation - The RAPT Therapeutics, Inc. Inducement Plan was adopted on March 25, 2025, reserving **62,500 shares** for grants to new employees or directors; no awards had been granted as of June 30, 2025[50](index=50&type=chunk) - The 2025 Equity Incentive Plan was adopted on March 25, 2025, and approved on May 29, 2025, initially reserving **4,408,997 shares**, including new shares and rollovers from previous plans[51](index=51&type=chunk) Stock Option Activity | Metric | Number of Shares Outstanding | Weighted Average Exercise Price Per Share | Aggregate Intrinsic Value (in thousands) | | :-------------------------- | :--------------------------- | :---------------------------------------- | :--------------------------------------- | | Balances at Dec 31, 2024 | 625,337 | $167.52 | $1 | | Stock options granted | 2,839,586 | $8.00 | | | Stock options exercised | — | — | | | Stock options forfeited | (73,584) | $95.37 | | | Balances at June 30, 2025 | 3,391,339 | $35.24 | $1,081 | - The Amended and Restated 2019 Employee Stock Purchase Plan removed its evergreen provision and reserved an additional **500,000 shares** of common stock[53](index=53&type=chunk) Stock-Based Compensation Expense (in thousands) | Period | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Research and development | $1,826 | $2,632 | $3,699 | $5,269 | | General and administrative | $2,711 | $2,752 | $5,486 | $5,513 | | Total stock-based compensation expense | $4,537 | $5,384 | $9,185 | $10,782 | - An option repricing effective November 13, 2024, reduced the exercise price of eligible options to **$12.56**, resulting in **$1.6 million of total incremental stock-based compensation expense**, with **$0.5 million recognized** for the six months ended June 30, 2025[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) 8. Net Loss Per Share Net Loss Per Share Calculation | Metric (in thousands, except per share) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net loss | $(17,643) | $(27,663) | $(34,808) | $(58,184) | | Weighted average shares used in computing net loss per share, basic and diluted | 26,949,752 | 4,858,345 | 26,938,008 | 4,843,527 | | Net loss per share, basic and diluted | $(0.65) | $(5.69) | $(1.29) | $(12.01) | - Potential dilutive securities, including stock options and estimated ESPP shares, totaling **3.4 million for 2025** and **0.7 million for 2024**, were anti-dilutive and thus excluded from the diluted net loss per share calculation[61](index=61&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, clinical programs, and future plans Overview - RAPT Therapeutics is a clinical-stage immunology-based biopharmaceutical company focused on inflammatory, immunological diseases, and oncology[63](index=63&type=chunk) - RPT904, the lead drug candidate for allergic diseases, is a half-life extended monoclonal antibody licensed worldwide (excluding Jemincare Territory) and showed **improved half-life and IgE reduction** compared to omalizumab in a Phase 1 trial[63](index=63&type=chunk)[64](index=64&type=chunk) - Tivumecirnon, an oncology drug candidate, is an oral small-molecule CCR4 antagonist that demonstrated **greater confirmed objective response rate and progression-free survival** in a Phase 2 NSCLC trial when combined with pembrolizumab[65](index=65&type=chunk) - The company **ceased development of zelnecirnon**, its small molecule CCR4 antagonist for inflammatory disease, in November 2024, following a clinical hold by the FDA due to a serious adverse event of liver failure[66](index=66&type=chunk) - A **1-for-8 reverse stock split** was effected on June 16, 2025, retroactively adjusting all share and per-share data[67](index=67&type=chunk) - Geopolitical and macroeconomic developments pose potential future impacts on business operations, supply chain, and clinical trials, though **no significant financial impact** was observed during the six months ended June 30, 2025[68](index=68&type=chunk)[69](index=69&type=chunk) Financial Overview - The company has incurred net losses since inception, with an **accumulated deficit of $649.4 million** as of June 30, 2025[70](index=70&type=chunk) - Net losses were **$34.8 million** for the six months ended June 30, 2025, and **$58.2 million** for the same period in 2024[70](index=70&type=chunk) - Operations have been primarily financed through equity sales, including **net proceeds of $143.0 million** from a private placement in December 2024[71](index=71&type=chunk) - As of June 30, 2025, the company had **$168.9 million in cash, cash equivalents, and marketable securities**, and **$159.8 million in working capital**[71](index=71&type=chunk) - **Substantial additional funding will be required** in the foreseeable future to support ongoing operations, expand the pipeline, and advance drug candidates through clinical development and regulatory approval[72](index=72&type=chunk)[73](index=73&type=chunk) Components of Operating Results - Research and development (R&D) costs are expensed as incurred, with external costs tracked by drug candidate and internal costs spread across multiple candidates[74](index=74&type=chunk)[81](index=81&type=chunk) - R&D expenses decreased in the quarter and six months ended June 30, 2025, due to the **early closure of the zelnecirnon clinical trials** and program termination, but are expected to increase in future years for RPT904 and other programs[77](index=77&type=chunk) - General and administrative (G&A) expenses include personnel-related costs, professional fees, facilities costs, and public company operating expenses[78](index=78&type=chunk) - Other income, net, primarily consists of interest earned on cash, cash equivalents, and marketable securities[80](index=80&type=chunk) Critical Accounting Policies, Significant Judgments and Use of Estimates - The company's condensed financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that affect reported amounts[82](index=82&type=chunk) - There have been **no significant changes** in critical accounting policies and estimates during the six months ended June 30, 2025, compared to the prior annual report[83](index=83&type=chunk) Results of Operations Comparison of the Three Months Ended June 30, 2025 and 2024 Key Metrics | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | :------- | | Research and development | $12,340 | $22,640 | $(10,300) | (45)% | | General and administrative | $7,195 | $6,690 | $505 | 8% | | Total operating expenses | $19,535 | $29,330 | $(9,795) | (33)% | | Net loss | $(17,643) | $(27,663) | $10,020 | (36)% | - The decrease in research and development expenses was primarily due to a **$7.0 million decrease in zelnecirnon development costs**, a **$2.9 million decrease in personnel costs**, and a **$0.8 million decrease in tivumecirnon development costs**, partially offset by a **$1.9 million increase in RPT904 development costs**[85](index=85&type=chunk)[86](index=86&type=chunk) - The increase in general and administrative expenses was primarily driven by a **$0.4 million increase in consulting costs** and a **$0.1 million increase in facilities costs**[88](index=88&type=chunk) - Other income, net, increased by **$0.2 million**, primarily due to higher invested cash balances[89](index=89&type=chunk) Comparison of the Six Months Ended June 30, 2025 and 2024 Key Metrics | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | $ Change | % Change | | :-------------------- | :--------------------------- | :--------------------------- | :------- | :------- | | Research and development | $24,382 | $47,421 | $(23,039) | (49)% | | General and administrative | $14,418 | $14,427 | $(9) | * | | Total operating expenses | $38,800 | $61,848 | $(23,048) | (37)% | | Net loss | $(34,808) | $(58,184) | $23,376 | (40)% | - The decrease in research and development expenses was primarily due to a **$14.6 million decrease in zelnecirnon development costs**, a **$6.5 million decrease in personnel costs**, and a **$1.7 million decrease in tivumecirnon development costs**, partially offset by a **$2.9 million increase in RPT904 development costs**[91](index=91&type=chunk)[92](index=92&type=chunk) - General and administrative expenses remained flat, with a **$0.2 million decrease in personnel costs** offset by a **$0.2 million increase in facilities costs**[93](index=93&type=chunk) - Other income, net, increased by **$0.3 million**, primarily due to higher invested cash balances[94](index=94&type=chunk) Liquidity and Capital Resources; Plan of Operations - The company has primarily financed operations through equity sales, including **$143.0 million in net proceeds** from a private placement in December 2024[95](index=95&type=chunk) - As of June 30, 2025, the company had **$168.9 million in cash, cash equivalents, and marketable securities**[95](index=95&type=chunk) - Current cash and marketable securities are believed to be **sufficient to fund anticipated operations for at least the next 12 months**[96](index=96&type=chunk) - **Substantial additional funding will be required** for ongoing R&D and potential commercialization, which may be raised through equity or debt financings, strategic alliances, or other capital sources[96](index=96&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) - The company **regained compliance with Nasdaq's minimum bid price rule** on June 20, 2025, following a 1-for-8 reverse stock split effected on June 16, 2025[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - Net cash used in operating activities was **$63.7 million** for the six months ended June 30, 2025, including a **$35.0 million upfront license fee payment** to Jemincare[104](index=104&type=chunk) - Net cash used in investing activities was **$64.3 million** for the six months ended June 30, 2025, primarily due to purchases of marketable securities[107](index=107&type=chunk) - Net cash provided by financing activities was **$0.2 million** for the six months ended June 30, 2025, from employee stock plans[109](index=109&type=chunk) Smaller Reporting Company Status - The company qualifies as a "smaller reporting company" under the Exchange Act, allowing it to utilize scaled disclosures, including exemption from auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act[111](index=111&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, RAPT Therapeutics, Inc is exempt from providing these disclosures - The company is not required to provide quantitative and qualitative disclosures about market risk due to its status as a "smaller reporting company"[112](index=112&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025 - Management, with the participation of the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** at a reasonable assurance level as of June 30, 2025[113](index=113&type=chunk) - There were **no changes in internal control over financial reporting** during the fiscal quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[114](index=114&type=chunk) [PART II. OTHER INFORMATION](index=32&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) Management believes no current legal claims would materially affect the company's financial condition - Management believes there are **no currently pending claims or actions** that would have a material adverse effect on the company's results of operations, financial condition, or cash flows[115](index=115&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks in clinical development, financial sustainability, and market dynamics - Investing in the company's common stock involves a **high degree of risk**, and the occurrence of any described risks could materially and adversely affect its business, financial condition, results of operations, prospects, and stock price[116](index=116&type=chunk) Summary of Risk Factors - Product candidates may **fail or suffer delays** in clinical development, materially affecting commercial viability[117](index=117&type=chunk)[118](index=118&type=chunk) - The company is a clinical-stage therapeutics company with a **history of losses** and may never achieve or maintain profitability[117](index=117&type=chunk)[125](index=125&type=chunk) - The company may not be successful in building a pipeline of drug candidates and has **no history of successfully developing drugs**[117](index=117&type=chunk)[134](index=134&type=chunk) - The market may not be receptive to current or future drug candidates, potentially preventing revenue generation from sales or licensing[117](index=117&type=chunk)[135](index=135&type=chunk) - **Undesirable side effects** caused by drug candidates could compromise the ability to market and derive revenue, as seen with the cessation of the zelnecirnon program[117](index=117&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - **Substantial additional funds are needed** for drug candidate development, and there is no guarantee of sufficient future funding[117](index=117&type=chunk)[143](index=143&type=chunk) - **Reliance on third parties** for preclinical studies and clinical trials poses risks of delays if they fail to perform as required[117](index=117&type=chunk)[156](index=156&type=chunk) - **Dependence on third-party manufacturers** for drug candidates and clinical supplies may lead to limited, interrupted, or unsatisfactory supply[117](index=117&type=chunk)[164](index=164&type=chunk) - The company faces **intense competition** from entities developing similar drug candidates, many of which are larger and better funded[117](index=117&type=chunk)[170](index=170&type=chunk) - Inability to develop internal sales, marketing, and distribution capabilities or secure third-party agreements could hinder commercialization[117](index=117&type=chunk)[182](index=182&type=chunk) - International operations expose the company to business, political, operational, and financial risks[120](index=120&type=chunk)[183](index=183&type=chunk) - Stringent and evolving data privacy and security laws, regulations, and contractual obligations pose risks of investigations, penalties, and business disruptions[120](index=120&type=chunk)[266](index=266&type=chunk) - The company's **stock price may be volatile**, and purchasers of common stock could incur substantial losses[120](index=120&type=chunk)[293](index=293&type=chunk) - Raising additional capital may cause **dilution to stockholders**, restrict operations, or require relinquishing rights to technologies or drug candidates[120](index=120&type=chunk)[298](index=298&type=chunk) Risks Related to Our Business - The company has **no products with regulatory approval** and its ability to achieve profitability depends on successfully developing and commercializing drug candidates, which involves extensive and uncertain preclinical studies and clinical trials[118](index=118&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk)[123](index=123&type=chunk) - The company has a history of net losses, with an **accumulated deficit of $649.4 million** as of June 30, 2025, and expects to continue incurring significant operating losses[125](index=125&type=chunk) - **Success in early clinical trials** or preclinical studies may not be indicative of results in later trials, and preliminary data may differ materially from final data[127](index=127&type=chunk)[132](index=132&type=chunk)[133](index=133&type=chunk) - The company has **no history of successfully developing drugs** to commercialization and may not be successful in building a pipeline of viable drug candidates[134](index=134&type=chunk) - **Market acceptance of drug candidates is uncertain** and depends on factors such as safety, efficacy, pricing, and reimbursement, which could adversely affect revenue generation[135](index=135&type=chunk)[136](index=136&type=chunk) - **Undesirable side effects** from drug candidates could lead to clinical trial delays, regulatory approval issues, or product recalls, as exemplified by the cessation of the zelnecirnon program due to liver failure[138](index=138&type=chunk)[139](index=139&type=chunk) - The company requires **substantial additional funding** for its research, development, and commercialization efforts, with current funds projected to last at least 12 months, but future capital needs are significant and uncertain[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) - Limited financial and managerial resources necessitate prioritization of development programs, potentially leading to missed opportunities for more profitable drug candidates[151](index=151&type=chunk) - Inability to enter into or maintain collaborations or strategic transactions on acceptable terms could hinder drug candidate development and commercialization[152](index=152&type=chunk)[155](index=155&type=chunk) - **Reliance on third-party** clinical investigators, CROs, and CDMOs for preclinical studies and clinical trials means less control over timing and quality, potentially causing delays[156](index=156&type=chunk)[157](index=157&type=chunk) - Difficulties in enrolling sufficient eligible patients in clinical trials could delay development activities and increase costs[159](index=159&type=chunk)[160](index=160&type=chunk) - **Dependence on third-party contract manufacturers**, some of which are sole-source vendors, for drug candidate supply poses risks of limitations, interruptions, or quality issues[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk) - Estimates of market opportunities for drug candidates may be incorrect, leading to smaller treatable populations and adverse effects on business prospects[168](index=168&type=chunk)[169](index=169&type=chunk) - The biopharmaceutical industry is **highly competitive**, with many larger and better-funded companies developing competing treatments, which could adversely affect the company's ability to commercialize drug candidates[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - The company's success depends on attracting and retaining qualified key management, technical personnel, and employees; a **workforce reduction in July 2024 (40% headcount)** could lead to disruptions and loss of expertise[148](index=148&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) - Managing growth and expanding operations, including development, regulatory, and manufacturing capabilities, presents challenges due to limited experience[179](index=179&type=chunk)[180](index=180&type=chunk) - The company currently **lacks internal sales, marketing, and distribution capabilities**, requiring significant investment or reliance on third parties for commercialization[182](index=182&type=chunk) - **International operations** expose the company to various risks, including conflicting laws, regulatory hurdles, political instability, trade restrictions, and foreign currency fluctuations[183](index=183&type=chunk)[184](index=184&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk)[187](index=187&type=chunk) - Governmental price controls in foreign markets could adversely affect future profitability and the ability to commercialize approved drug candidates[189](index=189&type=chunk) - Disease outbreaks, epidemics, and pandemics could disrupt operations, clinical trials, and supply chains, exacerbating existing risks[190](index=190&type=chunk)[191](index=191&type=chunk)[192](index=192&type=chunk) - **Concentration of operations in the San Francisco Bay Area** makes the company vulnerable to natural disasters or other unplanned events, potentially disrupting business continuity[194](index=194&type=chunk) Risks Related to Our Intellectual Property - The company's success depends on obtaining and maintaining intellectual property rights, primarily patents, which is an **expensive, complex, and time-consuming process** with uncertain outcomes[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - Issued patents and patent applications may be **challenged by third parties**, potentially leading to narrowing, invalidation, or unenforceability of patent rights[199](index=199&type=chunk)[200](index=200&type=chunk)[212](index=212&type=chunk) - Some intellectual property may be **co-owned with third parties**, potentially allowing competitors access or requiring cooperation for enforcement[201](index=201&type=chunk) - Failure to comply with obligations under license or collaboration agreements could result in damages or **loss of essential intellectual property rights**[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk) - Patents have a **limited lifespan**, and extensions may not be sufficient or granted, potentially allowing competitors to commercialize similar products earlier[206](index=206&type=chunk)[207](index=207&type=chunk) - **Changes in U.S. patent law** (e.g., Leahy-Smith Act) or foreign patent laws (e.g., Unitary Patent system in Europe) could diminish the value or narrow the scope of patent protection[209](index=209&type=chunk)[210](index=210&type=chunk)[211](index=211&type=chunk) - Third parties may initiate legal proceedings alleging infringement, misappropriation, or violation of their intellectual property rights, leading to **costly litigation, damages, or injunctions**[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) - The company may be unable to obtain necessary or exclusive licenses to third-party intellectual property, potentially forcing **abandonment of relevant drug candidates**[215](index=215&type=chunk)[226](index=226&type=chunk) - In-licensed patent rights may be subject to **U.S. government march-in rights** if government-funded, potentially harming competitive position[227](index=227&type=chunk) - Protecting the confidentiality of trade secrets is difficult, and disclosure or independent development by competitors could materially harm the company's competitive position[228](index=228&type=chunk)[229](index=229&type=chunk) - The company may face claims of wrongful use or disclosure of trade secrets from employees' or consultants' former employers, leading to litigation and diversion of resources[230](index=230&type=chunk) - Non-compliance with procedural, document submission, or fee payment requirements imposed by government patent agencies can result in the **abandonment or lapse of patent rights**[231](index=231&type=chunk) - Trademarks and trade names may be challenged or infringed, affecting name recognition and competitive effectiveness[232](index=232&type=chunk) - Intellectual property rights have limitations and may not adequately protect against all potential threats, such as competitors designing around patents or independently developing similar technologies[233](index=233&type=chunk)[234](index=234&type=chunk) Legal and Regulatory Risks - Clinical development is a **lengthy, expensive, and uncertain process**, with a high risk of failure, and early results may not predict future trial outcomes[235](index=235&type=chunk)[236](index=236&type=chunk)[237](index=237&type=chunk) - Obtaining U.S. and foreign regulatory approval for drug candidates is **costly, time-consuming, and unpredictable**, with no guarantee of success, and potential for delays or denials[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) - Even with regulatory approval, the company will be subject to **ongoing regulatory obligations**, including post-marketing testing and surveillance, and non-compliance could lead to penalties or market withdrawal[245](index=245&type=chunk)[246](index=246&type=chunk)[258](index=258&type=chunk) - **Healthcare legislative reforms** (e.g., ACA, IRA, OBBBA) and government scrutiny over drug pricing could adversely affect the business by limiting reimbursement, increasing pricing pressures, or reducing demand[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk)[250](index=250&type=chunk)[251](index=251&type=chunk)[252](index=252&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk)[255](index=255&type=chunk) - Failure to comply with **healthcare fraud and abuse laws** (e.g., Anti-Kickback Statute, False Claims Act, HIPAA) by the company or its partners could result in significant penalties, fines, and reputational harm[256](index=256&type=chunk)[257](index=257&type=chunk) - Commercialization success depends on **adequate third-party payor coverage and reimbursement**; unfavorable policies or price controls could materially harm the business[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - The company is subject to U.S. and foreign anti-corruption and anti-money laundering laws, and non-compliance by employees or third parties could lead to investigations, sanctions, and significant penalties[262](index=262&type=chunk)[263](index=263&type=chunk) - The business entails **significant product liability risk**, and insufficient insurance coverage could have a material adverse effect[264](index=264&type=chunk) - Misconduct by employees, principal investigators, consultants, or commercial partners, including non-compliance with regulatory standards, could lead to enforcement actions and reputational damage[265](index=265&type=chunk) - The company is subject to **stringent and evolving U.S. and foreign data privacy and security obligations** (e.g., HIPAA, GDPR, state privacy laws), and non-compliance or security incidents could result in investigations, fines, litigation, and business disruptions[266](index=266&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) - **Compromise of information technology systems or data**, including cyber-attacks and ransomware, could lead to regulatory actions, litigation, financial losses, and operational disruptions[276](index=276&type=chunk)[277](index=277&type=chunk)[278](index=278&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk)[286](index=286&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) - Non-compliance with environmental and health and human safety laws, particularly concerning hazardous materials, could result in substantial costs, fines, or penalties[289](index=289&type=chunk) - Increasing scrutiny and reporting obligations related to **environmental, social, and governance (ESG)** matters may impact the business and compliance costs[290](index=290&type=chunk) Risks Related to Ownership of Our Common Stock - The company's quarterly operating results are expected to fluctuate significantly, which may cause its **stock price to fluctuate or decline**[291](index=291&type=chunk)[292](index=292&type=chunk) - The stock price has been and is likely to remain **highly volatile**, influenced by factors such as clinical trial results, regulatory developments, competition, and general market conditions[293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) - The **1-for-8 reverse stock split** may not achieve its intended results of a sustained price increase and could lead to reduced trading liquidity and increased volatility[296](index=296&type=chunk)[297](index=297&type=chunk) - Raising additional capital through equity or convertible debt offerings will **dilute existing stockholders' ownership**, and debt financing may impose restrictive covenants[298](index=298&type=chunk)[299](index=299&type=chunk) - Lack of research or adverse opinions from securities analysts could lead to a decline in stock price and trading volume[301](index=301&type=chunk) - **Principal stockholders own a significant percentage** of the stock, enabling them to exert substantial control over corporate actions, potentially conflicting with other stockholders' interests[302](index=302&type=chunk)[303](index=303&type=chunk) - As a "smaller reporting company," the election of reduced reporting requirements may make the common stock less attractive to some investors, potentially affecting trading market and price volatility[304](index=304&type=chunk) - The ability to use **net operating loss carryforwards (NOLs)** and other tax attributes to offset future taxable income may be subject to limitations due to ownership changes or changes in tax laws[305](index=305&type=chunk)[306](index=306&type=chunk) - Changes in tax laws or regulations, such as those under the OBBBA or IRA, could adversely affect the company's business, cash flow, financial condition, or results of operations[307](index=307&type=chunk) - The company **does not anticipate paying cash dividends** in the foreseeable future, making capital appreciation the sole source of gain for stockholders[308](index=308&type=chunk) - The volatility of the stock price increases the risk of incurring significant costs from **securities class action litigation**[309](index=309&type=chunk) - **Anti-takeover provisions** in charter documents and Delaware law could make an acquisition more difficult and potentially prevent stockholders from replacing current management[310](index=310&type=chunk)[311](index=311&type=chunk) - **Exclusive forum provisions** in the amended certificate of incorporation designate specific courts for certain disputes, potentially limiting stockholders' ability to choose a favorable judicial forum[312](index=312&type=chunk)[313](index=313&type=chunk)[315](index=315&type=chunk)[316](index=316&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=89&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds - No unregistered sales of equity securities or use of proceeds were reported[317](index=317&type=chunk) [Item 3. Defaults Upon Senior Securities](index=89&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - No defaults upon senior securities were reported[318](index=318&type=chunk) [Item 4. Mine Safety Disclosures](index=89&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Mine Safety Disclosures are not applicable to the company[319](index=319&type=chunk) [Item 5. Other Information](index=89&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - No other information was reported for this item[320](index=320&type=chunk) [Item 6. Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Quarterly Report on Form 10-Q - Exhibits filed include the Amended and Restated Certificate of Incorporation, Certificate of Amendment, Amended and Restated Bylaws, 2025 Equity Incentive Plan, various stock option and RSU agreements, Amended and Restated 2019 Employee Stock Purchase Plan, Non-Employee Director Compensation Policy, and certifications (31.1, 31.2, 32.1)[323](index=323&type=chunk) [Signatures](index=91&type=section&id=Signatures) The report is duly signed by the company's President and CEO and its Chief Financial Officer - The report is signed by Brian Wong, M.D., Ph.D., President and Chief Executive Officer, and Rodney Young, Chief Financial Officer[327](index=327&type=chunk)

[Company Overview and Business Highlights](index=1&type=section&id=Company%20Overview%20and%20Business%20Highlights) RAPT Therapeutics reported strong Q2 2025 results, advancing RPT904 in clinical trials and strengthening its team and board [Introduction and Q2 2025 Highlights](index=1&type=section&id=Introduction%20and%20Q2%202025%20Highlights) RAPT Therapeutics reported Q2 and H1 2025 financial results, highlighting team and board strengthening and significant clinical milestones for RPT904 in H2 2025 - **RAPT Therapeutics, Inc. (Nasdaq: RAPT)** is a clinical-stage immunology-based biopharmaceutical company focused on inflammatory and immunological diseases[2](index=2&type=chunk) - Key achievements in H1 2025 include **strengthening the team** with Jessica Savage (drug developer in food allergy) and the **board** with Drs. Scott Braunstein and Ashley Dombkowski[3](index=3&type=chunk) - **Anticipated catalysts for H2 2025** include **initiating a Phase 2b trial of RPT904 in food allergy** and **reporting topline results from Jemincare's Phase 2 trials of RPT904 in CSU and asthma**, while also **advancing the next-generation CCR4 pipeline**[3](index=3&type=chunk) [About RAPT Therapeutics](index=1&type=section&id=About%20RAPT%20Therapeutics) RAPT Therapeutics is a clinical-stage biopharmaceutical company developing novel immunology-based therapies for inflammatory and immunological diseases - **RAPT is a clinical-stage immunology-based biopharmaceutical company** focused on discovering, developing, and commercializing novel therapies for inflammatory and immunological diseases[11](index=11&type=chunk) - The company utilizes **deep and proprietary expertise in immunology** to develop therapies designed to modulate critical immune responses[11](index=11&type=chunk) [Financial Results Overview](index=1&type=section&id=Financial%20Results%20Overview) RAPT Therapeutics reported a significantly reduced net loss for Q2 and H1 2025, driven by decreased R&D expenses, while maintaining a strong cash position [Second Quarter Ended June 30, 2025](index=1&type=section&id=Second%20Quarter%20Ended%20June%2030%2C%202025) RAPT Therapeutics reported a **$17.6 million net loss** in Q2 2025, a **36.5% improvement** driven by reduced R&D expenses Second Quarter Financial Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | Change (Millions) | Change (%) | | :------------------------- | :----------------- | :----------------- | :---------------- | :--------- | | Net Loss | $(17.6) | $(27.7) | $10.1 | (36.5%) | | R&D Expenses | $12.3 | $22.6 | $(10.3) | (45.6%) | | G&A Expenses | $7.2 | $6.7 | $0.5 | 7.5% | - The decrease in research and development expenses was primarily due to lower costs related to the development of zelnecirnon and tivumecirnon, personnel, lab supplies, non-cash stock-based compensation, and facilities, partially offset by increased costs for RPT904 and early-stage programs[6](index=6&type=chunk) - The increase in general and administrative expenses was primarily due to higher consulting and facilities costs[7](index=7&type=chunk) [Six Months Ended June 30, 2025](index=1&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) RAPT Therapeutics reported a **$34.8 million net loss** for H1 2025, a **40.2% reduction** primarily due to decreased R&D expenses Six Months Financial Highlights (H1 2025 vs H1 2024) | Metric | H1 2025 (Millions) | H1 2024 (Millions) | Change (Millions) | Change (%) | | :------------------------- | :----------------- | :----------------- | :---------------- | :--------- | | Net Loss | $(34.8) | $(58.2) | $23.4 | (40.2%) | | R&D Expenses | $24.4 | $47.4 | $(23.0) | (48.5%) | | G&A Expenses | $14.4 | $14.4 | $0.0 | 0.0% | - The decrease in research and development expenses for the six months was primarily due to lower costs related to the development of zelnecirnon and tivumecirnon, personnel, lab supplies, non-cash stock-based compensation, and facilities, partially offset by increased costs for RPT904 and early-stage programs[9](index=9&type=chunk) - General and administrative expenses were flat for the six months, primarily due to decreased personnel costs offset by increases in facilities costs[10](index=10&type=chunk) [Balance Sheet Highlights](index=1&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, RAPT Therapeutics held **$168.9 million in cash and equivalents**, with total assets decreasing due to reduced cash and paid license fees - As of June 30, 2025, the Company had **cash and cash equivalents and marketable securities of $168.9 million**[10](index=10&type=chunk) Key Balance Sheet Items (June 30, 2025 vs Dec 31, 2024) | Metric | June 30, 2025 (Thousands) | Dec 31, 2024 (Thousands) | Change (Thousands) | Change (%) | | :-------------------------------- | :------------------------ | :----------------------- | :----------------- | :--------- | | Cash and cash equivalents | $41,886 | $169,735 | $(127,849) | (75.3%) | | Marketable securities | $127,061 | $61,320 | $65,741 | 107.2% | | Total Cash, Equivalents & Marketable Securities | $168,947 | $231,055 | $(62,108) | (26.9%) | | Total Assets | $178,410 | $240,325 | $(61,915) | (25.8%) | | Total Current Liabilities | $13,043 | $48,351 | $(35,308) | (73.0%) | | License fees payable | $0 | $35,000 | $(35,000) | (100.0%) | | Total Liabilities | $14,002 | $50,421 | $(36,419) | (72.2%) | | Total Stockholders' Equity | $164,408 | $189,904 | $(25,496) | (13.4%) | [Financial Statements](index=3&type=section&id=Financial%20Statements) This section provides detailed unaudited financial statements, including statements of operations and balance sheets, reflecting the company's financial performance and position [Statements of Operations and Comprehensive Loss](index=3&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Loss) This section details unaudited statements of operations and comprehensive loss for Q2 and H1 2025, showing reduced net loss after a **1-for-8 reverse stock split** Statements of Operations and Comprehensive Loss (Unaudited, in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $12,340 | $22,640 | $24,382 | $47,421 | | General and administrative | $7,195 | $6,690 | $14,418 | $14,427 | | Total operating expenses | $19,535 | $29,330 | $38,800 | $61,848 | | Loss from operations | $(19,535) | $(29,330) | $(38,800) | $(61,848) | | Other income, net | $1,892 | $1,667 | $3,992 | $3,664 | | Net loss | $(17,643) | $(27,663) | $(34,808) | $(58,184) | | Unrealized loss on marketable securities | $(19) | $(37) | $(34) | $(150) | | Total comprehensive loss | $(17,662) | $(27,700) | $(34,842) | $(58,334) | | Net loss per share, basic and diluted | $(0.65) | $(5.69) | $(1.29) | $(12.01) | | Weighted average shares | 26,949,752 | 4,858,345 | 26,938,008 | 4,843,527 | - All share amounts and per share amounts in this press release have been adjusted to reflect the **1-for-8 reverse split** of the Company's common stock, **effective on June 16, 2025**[4](index=4&type=chunk) [Balance Sheets](index=4&type=section&id=Balance%20Sheets) This section presents unaudited balance sheets for June 30, 2025, and audited for December 31, 2024, showing decreased assets and liabilities, including paid license fees Balance Sheets (Unaudited, in thousands) | Asset/Liability/Equity (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $41,886 | $169,735 | | Marketable securities | $127,061 | $61,320 | | Prepaid expenses and other current assets | $3,912 | $4,181 | | Total current assets | $172,859 | $235,236 | | Property and equipment, net | $970 | $1,367 | | Operating lease right-of-use assets | $2,308 | $3,333 | | Other assets | $2,273 | $389 | | **Total assets** | **$178,410** | **$240,325** | | **Liabilities:** | | | | Accounts payable | $4,189 | $1,275 | | Accrued expenses | $6,583 | $9,597 | | License fees payable | $— | $35,000 | | Operating lease liabilities, current | $2,205 | $2,422 | | Other current liabilities | $66 | $57 | | Total current liabilities | $13,043 | $48,351 | | Operating lease liabilities, non-current | $959 | $2,070 | | **Total liabilities** | **$14,002** | **$50,421** | | **Stockholders' Equity:** | | |\ | Common stock | $13 | $13 | | Additional paid-in capital | $813,734 | $804,388 | | Accumulated other comprehensive income | $16 | $50 | | Accumulated deficit | $(649,355) | $(614,547) | | **Total stockholders' equity** | **$164,408** | **$189,904** | | **Total liabilities and stockholders' equity** | **$178,410** | **$240,325** | - The balance sheet for December 31, 2024, has been derived from audited financial statements included in the Company's **Annual Report on Form 10-K** for the year ended December 31, 2024[17](index=17&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) This section includes important disclaimers regarding forward-looking statements and provides essential contact information for media and investors [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, emphasizing inherent risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements are based on current information, assumptions, and expectations, which are inherently subject to change and involve numerous risks and uncertainties[12](index=12&type=chunk) - Factors that may cause differences between current expectations and actual results include unexpected safety or efficacy data, preliminary data not being predictive, reliance on partners, lower clinical trial activation or enrollment rates, macroeconomic and geopolitical impacts, changes in competition, regulatory environment changes, and the sufficiency of RAPT's cash resources[12](index=12&type=chunk) - Detailed risk factors can be found in RAPT's **Quarterly Report on Form 10-Q** filed with the SEC on **August 7, 2025**, and subsequent filings[12](index=12&type=chunk) [Media and Investor Contacts](index=2&type=section&id=Media%20and%20Investor%20Contacts) This section provides essential contact information for media and investor relations inquiries for RAPT Therapeutics - **Media Contact**: Aljanae Reynolds (areynolds@wheelhouselsa.com)[13](index=13&type=chunk) - **Investor Contact**: Sylvia Wheeler (swheeler@wheelhouselsa.com)[13](index=13&type=chunk)

Core Insights - RAPT Therapeutics reported a productive first half of 2025 with key achievements and upcoming catalysts anticipated in the second half of the year [2] - The company is on track to initiate a Phase 2b trial of RPT904 in food allergy and to report topline results from Jemincare's Phase 2 trials of RPT904 in CSU and asthma [2] - RAPT's financial results show a significant reduction in net loss compared to the previous year, indicating improved financial health [3][5] Financial Performance - The net loss for the second quarter of 2025 was $17.6 million, a decrease from $27.7 million in the second quarter of 2024 [3] - Research and development expenses for the second quarter of 2025 were $12.3 million, down from $22.6 million in the same period of 2024, primarily due to reduced costs in the development of certain drugs [4] - General and administrative expenses increased to $7.2 million in the second quarter of 2025 from $6.7 million in the same period of 2024, mainly due to higher consulting and facilities costs [5] Six-Month Overview - For the six months ended June 30, 2025, the net loss was $34.8 million, compared to $58.2 million for the same period in 2024 [5] - Research and development expenses for the first half of 2025 totaled $24.4 million, down from $47.4 million in the first half of 2024, reflecting a similar trend as seen in the second quarter [6] - General and administrative expenses remained flat at $14.4 million for both the first halves of 2025 and 2024 [7] Cash Position - As of June 30, 2025, RAPT had cash and cash equivalents and marketable securities totaling $168.9 million [7]