PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for Q1 2025 show a reduced net loss of **$17.2 million** and decreased total assets, primarily due to lower R&D expenses and cash used in operations [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) Total assets decreased to **$187.6 million** by March 31, 2025, from **$240.3 million** at year-end 2024, mainly due to reduced cash and a **$35.0 million** license fee payment Condensed Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $60,257 | $169,735 | | Marketable securities | $119,019 | $61,320 | | Total current assets | $183,196 | $235,236 | | Total assets | $187,570 | $240,325 | | **Liabilities & Equity** | | | | License fees payable | $0 | $35,000 | | Total current liabilities | $8,678 | $48,351 | | Total liabilities | $10,198 | $50,421 | | Total stockholders' equity | $177,372 | $189,904 | [Condensed Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The company reported a net loss of **$17.2 million** for Q1 2025, a significant reduction from **$30.5 million** in Q1 2024, driven by lower R&D expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $12,042 | $24,781 | | General and administrative | $7,223 | $7,737 | | Total operating expenses | $19,265 | $32,518 | | Loss from operations | ($19,265) | ($32,518) | | Net loss | ($17,165) | ($30,521) | | Net loss per share, basic and diluted | ($0.08) | ($0.79) | [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to **$52.4 million** in Q1 2025, primarily due to a **$35.0 million** license fee payment, resulting in a **$109.5 million** net decrease in cash Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($52,414) | ($27,084) | | Net cash (used in) provided by investing activities | ($57,064) | $15,887 | | Net cash provided by financing activities | $0 | $9,036 | | **Net decrease in cash and cash equivalents** | **($109,478)** | **($2,161)** | [Notes to Condensed Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) Notes detail business, liquidity, and accounting policies, highlighting the cessation of the zelnecirnon program, focus on RPT904, and **$179.3 million** in cash deemed sufficient for 12 months - The company's lead drug candidate is RPT904 for allergic diseases, and its oncology candidate is tivumecirnon, while development of zelnecirnon for inflammatory disease ceased in November 2024[23](index=23&type=chunk) - Management believes current cash, cash equivalents, and marketable securities totaling **$179.3 million** are sufficient to fund operations for at least 12 months from the 10-Q filing date[24](index=24&type=chunk)[25](index=25&type=chunk) - In November 2024, the company repriced **3.9 million** stock options, resulting in **$1.6 million** of incremental stock-based compensation expense to be recognized over vesting and retention periods[53](index=53&type=chunk)[56](index=56&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift to RPT904 and tivumecirnon after discontinuing zelnecirnon, noting a **$17.2 million** Q1 2025 loss, **51%** lower R&D, and sufficient liquidity for 12 months [Overview](index=16&type=section&id=Overview) RAPT is a clinical-stage biopharmaceutical company focused on inflammatory and immunological diseases, with lead candidate RPT904 and oncology candidate tivumecirnon, following the cessation of the zelnecirnon program - The lead drug candidate is RPT904, a monoclonal antibody designed to bind free IgE for allergic diseases, licensed from Jemincare in December 2024[60](index=60&type=chunk)[61](index=61&type=chunk) - The oncology candidate, tivumecirnon, a CCR4 antagonist, is partnered with Hanmi for development in Korea and Greater China, with RAPT seeking a partner for other territories[62](index=62&type=chunk) - Development of zelnecirnon ceased in November 2024 following a clinical hold by the FDA in February 2024 due to a serious adverse event of liver failure in a patient[63](index=63&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Total operating expenses decreased **41%** to **$19.3 million** in Q1 2025, primarily driven by a **51%** reduction in R&D expenses due to the zelnecirnon program termination Comparison of Operations (in thousands) | Expense Category | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Research and development | $12,042 | $24,781 | ($12,739) | (51)% | | General and administrative | $7,223 | $7,737 | ($514) | (7)% | | **Total operating expenses** | **$19,265** | **$32,518** | **($13,253)** | **(41)%** | External R&D Expenses by Program (in thousands) | Program | Q1 2025 | Q1 2024 | $ Change | | :--- | :--- | :--- | :--- | | RPT904 | $1,063 | $0 | $1,063 | | Zelnecirnon | $188 | $7,841 | ($7,653) | | Tivumecirnon | $1,272 | $2,157 | ($884) | - The primary driver for the **$12.8 million** decrease in R&D expenses was the reduction in development costs for zelnecirnon (**$7.7 million**) and associated personnel costs (**$3.6 million**)[81](index=81&type=chunk) [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held **$179.3 million** in cash and equivalents, sufficient for 12 months, but anticipates needing substantial additional capital for future development - As of March 31, 2025, the company had **$179.3 million** in cash, cash equivalents, and marketable securities[85](index=85&type=chunk) - The company believes its current cash position is sufficient to fund operations for at least the next 12 months from the filing date[86](index=86&type=chunk) - Future capital requirements depend on numerous factors, including the progress of clinical trials, manufacturing costs, and potential licensing activities[87](index=87&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a "smaller reporting company," RAPT Therapeutics, Inc. is exempt from providing quantitative and qualitative disclosures about market risk - The company is not required to provide quantitative and qualitative disclosures about market risk because it qualifies as a "smaller reporting company"[99](index=99&type=chunk) [Controls and Procedures](index=24&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[100](index=100&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[101](index=101&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings that would materially adversely affect its financial condition or operations - Management believes there are currently no pending claims or actions that would have a material adverse effect on the company's results of operations, financial condition, or cash flows[103](index=103&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company faces extensive risks, including potential drug candidate failure, significant financial losses, reliance on third-party manufacturing, intense competition, and evolving data privacy regulations - The company's drug candidates may fail or suffer delays in clinical development, as exemplified by the zelnecirnon program's cessation in 2024 due to a serious adverse event, with no guarantee other candidates will not face similar issues[107](index=107&type=chunk)[108](index=108&type=chunk) - The company has a history of net losses (**$631.7 million** accumulated deficit as of March 31, 2025) and expects to incur significant losses for the foreseeable future, requiring substantial additional funding to continue operations[114](index=114&type=chunk)[130](index=130&type=chunk) - RAPT relies on third parties for manufacturing and supply, including a sole source (Jemincare) for the initial supply of RPT904, which exposes the company to supply chain risks[141](index=141&type=chunk)[149](index=149&type=chunk) - The business is subject to stringent and evolving data privacy and security laws (e.g., GDPR, HIPAA, state laws), and any failure to comply could result in significant penalties, litigation, and reputational harm[251](index=251&type=chunk)[253](index=253&type=chunk)[254](index=254&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=85&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds during the reporting period - None[298](index=298&type=chunk) [Defaults Upon Senior Securities](index=85&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[299](index=299&type=chunk) [Mine Safety Disclosures](index=85&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item regarding mine safety disclosures is not applicable to the company's operations - Not applicable[300](index=300&type=chunk) [Other Information](index=87&type=section&id=Item%205.%20Other%20Information) There is no other material information to report for the period - None[303](index=303&type=chunk) [Exhibits](index=88&type=section&id=Item%206.%20Exhibits) The report includes various exhibits, such as the Inducement Plan, related agreement forms, and officer certifications, with some documents incorporated by reference - Exhibits filed with this report include the company's Inducement Plan and officer certifications (31.1, 31.2, 32.1)[305](index=305&type=chunk)

[Business Highlights](index=1&type=section&id=Business%20Highlights) RAPT Therapeutics reported positive progress on its lead candidate, RPT904, with plans to initiate a Phase 2b trial for food allergies in the second half of 2025, while also anticipating clinical data from its partner, Jemincare, for RPT904 in chronic spontaneous urticaria (CSU) later in the year to inform future development strategies - The company is advancing its RPT904 program, with plans to initiate a **Phase 2b trial** for food allergy treatment in the second half of 2025[3](index=3&type=chunk) - RAPT is awaiting clinical data from its partner Jemincare for RPT904's potential as a treatment for **chronic spontaneous urticaria (CSU)**, expected later in 2025[3](index=3&type=chunk) [Financial Results Summary (Q1 2025)](index=1&type=section&id=Financial%20Results%20for%20the%20First%20Quarter%20March%2031%2C%202025) For the first quarter of 2025, RAPT significantly narrowed its net loss to $17.2 million from $30.5 million in the prior-year period, primarily driven by a substantial decrease in research and development expenses, while maintaining a solid cash position of $179.3 million in cash, cash equivalents, and marketable securities Q1 2025 vs Q1 2024 Key Financials | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $17.2 million | $30.5 million | | Research and Development Expenses | $12.0 million | $24.8 million | | General and Administrative Expenses | $7.2 million | $7.7 million | - The reduction in R&D expenses was mainly due to decreased costs related to the development of zelnecirnon and tivumecirnon, partially offset by increased investment in RPT904 and early-stage programs[5](index=5&type=chunk) - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling **$179.3 million**[7](index=7&type=chunk) [Detailed Financial Statements](index=3&type=section&id=Detailed%20Financial%20Statements) This section provides the unaudited Statements of Operations for the first quarter of 2025 and the Balance Sheets as of March 31, 2025, detailing the components of the company's operating expenses, net loss, assets, liabilities, and stockholders' equity [Statements of Operations and Comprehensive Loss](index=3&type=section&id=STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20LOSS) For the three months ended March 31, 2025, RAPT reported a net loss of $17.2 million, or ($0.08) per share, a significant improvement from a net loss of $30.5 million, or ($0.79) per share, in the same period of 2024, driven by lower total operating expenses which fell to $19.3 million from $32.5 million year-over-year Statements of Operations (Unaudited, in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $12,042 | $24,781 | | General and administrative | $7,223 | $7,737 | | **Total operating expenses** | **$19,265** | **$32,518** | | **Loss from operations** | **($19,265)** | **($32,518)** | | Other income, net | $2,100 | $1,997 | | **Net loss** | **($17,165)** | **($30,521)** | | **Net loss per share, basic and diluted** | **($0.08)** | **($0.79)** | [Balance Sheets](index=4&type=section&id=BALANCE%20SHEETS) As of March 31, 2025, RAPT's balance sheet showed total assets of $187.6 million, compared to $240.3 million at the end of 2024, with total liabilities decreasing significantly to $10.2 million from $50.4 million primarily due to the settlement of license fees payable, resulting in total stockholders' equity of $177.4 million Balance Sheet Highlights (Unaudited, in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $60,257 | $169,735 | | Marketable securities | $119,019 | $61,320 | | **Total assets** | **$187,570** | **$240,325** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $8,678 | $48,351 | | **Total liabilities** | **$10,198** | **$50,421** | | **Total stockholders' equity** | **$177,372** | **$189,904** | [About RAPT Therapeutics, Inc.](index=1&type=section&id=About%20RAPT%20Therapeutics%2C%20Inc.) RAPT Therapeutics is a clinical-stage biopharmaceutical company that leverages its deep expertise in immunology to discover and develop novel therapies, focusing on modulating critical immune responses to treat patients with inflammatory and immunological diseases - RAPT is a clinical-stage immunology-based biopharmaceutical company focused on developing novel therapies for inflammatory and immunological diseases[8](index=8&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section cautions investors that the press release contains forward-looking statements regarding the potential of RPT904, clinical trial timelines, and partnership expectations, highlighting that actual results could differ materially due to various risks including unfavorable clinical data, reliance on partners, macroeconomic conditions, and regulatory uncertainties - The report includes forward-looking statements concerning the therapeutic potential of RPT904, clinical trial timing, and partnership with Jemincare[9](index=9&type=chunk) - Key risks that could cause actual results to differ include unexpected safety or efficacy data, reliance on third parties, clinical trial enrollment rates, macroeconomic impacts, and the regulatory approval process[9](index=9&type=chunk)

Core Viewpoint - RAPT Therapeutics reported a significant reduction in net loss for Q1 2025 compared to Q1 2024, alongside a focus on advancing its lead candidate RPT904 for food allergies and chronic spontaneous urticaria [3][4][5]. Financial Performance - The net loss for Q1 2025 was $17.2 million, a decrease from $30.5 million in Q1 2024 [3]. - Research and development expenses were $12.0 million in Q1 2025, down from $24.8 million in the same period of 2024, primarily due to reduced costs associated with other drug developments [4]. - General and administrative expenses decreased to $7.2 million in Q1 2025 from $7.7 million in Q1 2024, attributed to lower personnel and professional service costs [5]. - As of March 31, 2025, the company had cash and cash equivalents and marketable securities totaling $179.3 million [5]. Company Overview - RAPT Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapies for inflammatory and immunological diseases, leveraging proprietary expertise in immunology [6].

Company Overview - RAPT Therapeutics, Inc. is a clinical-stage, immunology-based biopharmaceutical company focused on discovering, developing, and commercializing novel therapies for patients with inflammatory and immunological diseases [4] Key Appointment - Jessica Savage, M.D., M.H.S., has been appointed as Vice President of Clinical Development to oversee the development of RPT904, a novel monoclonal antibody targeting free human immunoglobulin E (IgE) [1][2] - Dr. Savage brings extensive experience in food allergy and allergic diseases, having held significant roles in clinical development at prestigious institutions and companies [3] Product Development - RAPT plans to advance RPT904 into a Phase 2b clinical trial for food allergy in the second half of 2025, aiming to generate data that differentiates RPT904 as a therapeutic option [2] - The initial focus for RPT904 will be on food allergy and chronic spontaneous urticaria (CSU), addressing a significant unmet need in these areas [1][2] Expertise and Background of Dr. Savage - Dr. Savage has a strong background in clinical development, having worked on global programs and held faculty positions at Harvard Medical School and Johns Hopkins University [3] - Her previous roles include Senior Medical Director at Alexion, where she led clinical development strategies for various conditions, showcasing her capability to drive RPT904's development [3]

Core Insights - RAPT Therapeutics has appointed Dr. Jessica Savage as Vice President of Clinical Development to lead the development of RPT904, a monoclonal antibody targeting free human immunoglobulin E (IgE) for allergic diseases [1][2] - The company plans to initiate a Phase 2b clinical trial for RPT904 in food allergy in the second half of 2025, aiming to address a significant unmet need in this area [2][3] Company Overview - RAPT Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapies for inflammatory and immunological diseases, leveraging proprietary expertise in immunology [4] Leadership and Expertise - Dr. Jessica Savage brings extensive experience in clinical development, particularly in food allergy, having held significant roles at prestigious institutions and companies [3] - Her previous experience includes leading clinical development strategies for various therapies at Alexion and contributing to multiple New Drug Applications (NDAs) at other pharmaceutical companies [3]

Core Viewpoint - RAPT Therapeutics, Inc. is actively engaging with investors through participation in multiple healthcare conferences in March 2025, highlighting its focus on immunology-based therapies for inflammatory and immunological diseases [1][3]. Company Overview - RAPT Therapeutics is a clinical-stage biopharmaceutical company specializing in the discovery, development, and commercialization of novel therapies aimed at treating patients with inflammatory and immunological diseases [2]. - The company leverages proprietary expertise in immunology to create therapies that modulate critical immune responses associated with these diseases [2]. Upcoming Events - RAPT Therapeutics will participate in the Leerink Global Healthcare Conference with a fireside chat scheduled for March 11, 2025, at 3:40 p.m. ET [3]. - The company will also take part in the Barclays 27th Annual Global Healthcare Conference, with a fireside chat on March 12, 2025, at 10:30 a.m. ET [3].

Financial Performance - The net loss for the years ended December 31, 2024 and 2023 was $129.9 million and $116.8 million, respectively, with an accumulated deficit of $614.5 million as of December 31, 2024[156]. - The company expects to continue incurring significant operating losses for the foreseeable future due to high research and development costs, with no revenue expected from product sales[157]. - The company does not expect to realize revenue from product sales in the foreseeable future until drug candidates are clinically tested, approved, and successfully marketed[177]. - The company has incurred significant net losses since inception and anticipates continuing to incur losses for the foreseeable future, which may limit the ability to utilize net operating loss carryforwards[335]. - The stock price of the company has been highly volatile, influenced by factors such as clinical trial results, regulatory developments, and market conditions[324]. - The company may need to raise additional capital through equity offerings or debt financings, which could dilute existing stockholders' ownership interests[328]. Clinical Development and Trials - The company has no products that have gained regulatory approval, and only RPT904 and tivumecirnon have been tested in humans, with no candidates advancing to late-stage development[149]. - Clinical holds were placed on the Phase 2 clinical trials of zelnecirnon in 2024 due to a serious adverse event, leading to the program's discontinuation based on FDA feedback[150]. - The company has completed a Phase 1 clinical trial for tivumecirnon and a Phase 1/2 trial in combination with pembrolizumab, but further clinical trials are needed to determine efficacy and safety[159]. - The company is facing high risks of failure in clinical development, with the potential for significant setbacks in advanced clinical trials due to lack of efficacy or safety issues[265]. - Clinical trials are expensive and can take many years to complete, with the possibility of delays due to regulatory requirements or ethical issues[269]. - The company has limited experience in managing clinical trials necessary for obtaining regulatory approvals, which typically takes many years[272]. Regulatory and Compliance Risks - The company may face additional regulatory scrutiny and potential penalties if it fails to comply with evolving government regulations[275][276]. - Regulatory approval processes are costly, time-consuming, and uncertain, with no guarantee that any drug candidates will receive the necessary approvals[270]. - The company is subject to numerous foreign regulatory requirements, which may differ significantly from U.S. regulations and could impact the approval timeline[274]. - Changes in the regulatory landscape, including the recent Supreme Court decision, could create further uncertainty for the company's operations and drug approval processes[282]. - The company may face claims from third parties alleging violations of intellectual property rights, leading to costly and time-consuming litigation[253]. Intellectual Property Risks - The company relies heavily on intellectual property rights for its drug candidates, and any failure to secure or maintain these rights could hinder its competitive position[220]. - Patent prosecution is complex and costly, and the company may not be able to effectively protect its innovations, which could impact its market position[221]. - Co-ownership of intellectual property with third parties may limit the company's ability to enforce its rights and could allow competitors to enter the market[226]. - The company may face challenges from third parties attempting to invalidate its intellectual property rights, which could impact profitability and competitive standing[237]. Operational Challenges - The company may not have the financial resources to continue development or enter new collaborations for drug candidates, which could hinder progress[154]. - The company relies on third-party organizations for clinical trials, which may lead to delays and less control over the development process[183]. - The company currently has no manufacturing capabilities and relies on sole source vendors for critical supplies[189]. - The company faces challenges in managing growth and expanding operations effectively[205]. Market and Competitive Landscape - The market may not be receptive to the company's drug candidates, which could prevent revenue generation even if regulatory approval is obtained[165]. - Intense competition exists from larger, well-capitalized companies in the biotechnology and pharmaceutical sectors[196]. - The market opportunities for drug candidates may be smaller than estimated, adversely affecting revenue generation[194]. Workforce and Human Resources - A workforce reduction impacting 47 employees, or approximately 40% of headcount, was approved in July 2024 to conserve cash resources[175]. - The ability to attract and retain qualified personnel is critical for the company's success and operational continuity[200]. - The company has 68 full-time employees as of December 31, 2024, and will need to hire more to support future development[203]. Financial and Capital Structure - The company may need to raise additional capital through public or private equity offerings, debt financings, or collaborations, with no assurance of success[174]. - Significant stockholders may exert control over corporate actions, potentially conflicting with the interests of other stockholders[332]. - The company has never declared or paid cash dividends on its capital stock, intending to retain all future earnings for business growth[339]. Environmental, Social, and Governance (ESG) Considerations - The company is subject to increasing scrutiny regarding its environmental, social, and governance (ESG) practices, which may entail additional compliance costs[322]. - The company is subject to various environmental, health, and safety regulations, and non-compliance could result in substantial fines or penalties[321]. Data Privacy and Cybersecurity - The company faces stringent data privacy and security obligations, with potential penalties including fines and disruptions to business operations[299]. - Cybersecurity threats, including ransomware attacks, pose significant risks to the company's operations and sensitive data[311]. - The company may incur costs related to notifying stakeholders of security incidents, which could lead to adverse consequences[317].

Financial Performance - Net loss for Q4 2024 was $53.2 million, an increase of 72.1% compared to a net loss of $30.9 million in Q4 2023[3] - For the full year 2024, net loss was $129.9 million, compared to $116.8 million for 2023, reflecting a 11.5% increase[8] Research and Development - Research and development expenses for Q4 2024 were $46.5 million, up 73.8% from $26.8 million in Q4 2023, primarily due to a $35.0 million upfront license fee for RPT904[4] - Total research and development expenses for 2024 were $107.2 million, a 6.3% increase from $101.0 million in 2023[9] - RPT Therapeutics plans to initiate a Phase 2b clinical trial for RPT904 in food allergy in the second half of 2025[2] Operating Expenses - General and administrative expenses for Q4 2024 were $8.0 million, a 23.1% increase from $6.5 million in Q4 2023[5] - The company reported total operating expenses of $54.5 million for Q4 2024, compared to $33.2 million in Q4 2023, marking a 63.8% increase[15] Cash and Financing - The company had cash and cash equivalents and marketable securities of $231.1 million as of December 31, 2024[11] - The company raised $143.0 million through a private placement of 100 million shares at $0.85 per share in December 2024[7] - In December 2024, the company entered a license agreement for RPT904, paying a $35.0 million upfront fee and potential milestone payments up to $672.5 million[6]

Core Viewpoint - RAPT Therapeutics is focusing on advancing the development of RPT904, a potential best-in-class treatment for food allergies and chronic spontaneous urticaria, with plans to initiate a Phase 2b clinical trial in the second half of 2025 [2] Financial Results for Q4 2024 - The net loss for Q4 2024 was $53.2 million, an increase from $30.9 million in Q4 2023 [3] - Research and development expenses for Q4 2024 were $46.5 million, up from $26.8 million in Q4 2023, primarily due to a $35.0 million upfront license fee for RPT904 [4] - General and administrative expenses for Q4 2024 were $8.0 million, compared to $6.5 million in Q4 2023, driven by increased professional services and personnel costs [5] Financial Results for Year Ended December 31, 2024 - The net loss for the year ended December 31, 2024, was $129.9 million, compared to $116.8 million for the year ended December 31, 2023 [7] - Research and development expenses for the year were $107.2 million, up from $101.0 million in 2023, mainly due to the upfront license fee for RPT904 [8] - General and administrative expenses for the year were $28.9 million, compared to $26.1 million in 2023, reflecting increased non-cash stock-based compensation and personnel costs [9] Cash Position and Financing Activities - As of December 31, 2024, the company had cash and cash equivalents and marketable securities totaling $231.1 million [9] - In December 2024, the company raised $143.0 million through a private placement of 100 million shares at $0.85 per share and pre-funded warrants [7] Licensing Agreement - In December 2024, the company entered into a licensing agreement with Shanghai Jemincare Pharmaceutical Co., Ltd., paying a $35.0 million upfront fee for exclusive rights to RPT904 outside of certain regions in Asia, with potential additional milestone payments of up to $672.5 million [6]

Core Viewpoint - Rapt Therapeutics has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, suggesting that revisions in earnings estimates can lead to significant price changes [4][6]. - Rapt Therapeutics is projected to earn -$2.14 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 29.8% [8]. Analyst Sentiment and Market Position - Analysts have increased their earnings estimates for Rapt Therapeutics, with the Zacks Consensus Estimate rising by 32% over the past three months [8]. - The upgrade to Zacks Rank 2 places Rapt Therapeutics in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Zacks Rating System Overview - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a proven track record of performance, where Zacks Rank 1 stocks have generated an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, while the next 15% receive a 'Buy' rating [9].