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Rapport Therapeutics, Inc.(RAPP) - 2024 Q4 - Annual Report

Drug Development and Clinical Trials - RAP-219 is a precision small molecule designed to selectively target TARP8, achieving neuroanatomical specificity and potentially transforming treatment for focal epilepsy, bipolar disorder, and peripheral neuropathic pain[20]. - Four Phase 1 trials of RAP-219 have been completed, demonstrating well-tolerated results and achieving target receptor occupancy associated with maximal seizure protection in preclinical models[21]. - A Phase 2a proof-of-concept trial for RAP-219 in refractory focal epilepsy is ongoing, with topline results expected in Q3 2025[22]. - The Phase 2a trial is expected to report topline results in Q3 2025, with potential for RAP-219 to provide translatable proof-of-concept for future focal epilepsy trials[98]. - The Phase 2a proof-of-concept trial of RAP-219 aims to enroll approximately 20 participants with an RNS system, with a primary endpoint of reducing long episode (LE) frequency by at least 30% compared to baseline[92][93]. - A collaboration with NeuroPace was established to leverage RNS system data for tracking patient responses in the Phase 2a trial, enhancing patient recruitment efficiency[94]. - Ongoing studies are assessing longer-term dosing and reproductive toxicity, with initial findings indicating a low risk of convulsion[81]. - Clinical trials are conducted in three phases, with Phase 1 focusing on safety and dosage, Phase 2 on efficacy, and Phase 3 on generating data for approval[172]. Market Potential and Unmet Needs - The total branded market for epilepsy was approximately 2.8billionin2022andisprojectedtogrowtoapproximately2.8 billion in 2022 and is projected to grow to approximately 3.6 billion by 2028[28]. - Approximately 30 to 40 percent of epilepsy patients experience refractory epilepsy despite taking two or more antiseizure medications, highlighting the need for new therapies[29]. - Epilepsy affects approximately 50 million people globally, with 3.0 million adults in the United States, and the annual direct costs in the U.S. are estimated at 28billion[50].Focalepilepsyaccountsfor6028 billion[50]. - Focal epilepsy accounts for 60% of all epilepsies, with the unpredictable nature of seizures significantly impacting patient quality of life[51]. - The global bipolar disorder market was approximately 1.4 billion in 2022, expected to grow to over 4billionby2028,indicatingsignificantmarketpotentialforRAP219inthisindication[106].Peripheralneuropathicpainisestimatedtoaffectupto174 billion by 2028, indicating significant market potential for RAP-219 in this indication[106]. - Peripheral neuropathic pain is estimated to affect up to 17% of the global population, with a market size of approximately 6.6 billion in 2021, forecasted to grow at over 4% annually[108]. - Significant unmet need in the treatment of peripheral neuropathic pain, with most available treatments having only moderate efficacy and associated side effects[110]. Drug Mechanism and Pharmacology - RAP-219 aims to improve tolerability and adherence by precisely modulating only diseased brain regions, potentially offering a better therapeutic index compared to existing antiseizure medications[32]. - RAP-219 is designed as a highly potent and selective NAM of TARP8-AMPAR, demonstrating antiseizure activity in preclinical models without motoric impairment or sedation[8]. - RAP-219's pharmacology studies indicate it may treat bipolar disorder and peripheral neuropathic pain, in addition to focal epilepsy[49]. - Preclinical studies support RAP-219's pharmacodynamic properties, with earlier generation TARP8 NAMs showing similar effects[62]. - The tolerability profile of RAP-219 is expected to be differentiated from perampanel, which has a high incidence of side effects such as dizziness and somnolence[61]. - The differentiated mechanism of action of RAP-219 may provide superior clinical activity compared to currently approved antiseizure medications, potentially reducing intolerable adverse effects[101]. Safety and Tolerability - In Phase 1 trials, RAP-219 was generally well tolerated with only 3% of participants discontinuing due to treatment emergent adverse events[83]. - No adverse effects were observed in a 28-day GLP toxicology study in rats, supporting the drug's tolerability[80]. - Among 48 participants exposed to RAP-219, the most common treatment-emergent adverse events (TEAEs) were headache (n=5), sinus tachycardia (n=4), and brain fog, insomnia, bowel movement irregularity, dry mouth, and medical device site reaction (n=3 each)[88]. Competitive Landscape - RAP-219 faces competition from existing therapies for focal epilepsy, including XCOPRI and FYCOMPA, as well as various therapies in clinical development[135]. - In bipolar disorder, RAP-219 competes with mood stabilizers and antidepressants, with additional competition from BHV-7000 in clinical development[136]. - For peripheral neuropathic pain, competition includes existing therapies such as duloxetine and gabapentin, along with clinical candidates like VX-548 and BHV-2100[137]. Intellectual Property and Licensing - The company holds six patent families related to TARP8 modulators, with expiration dates ranging from 2036 to 2045, and multiple pending applications[141]. - The company has a license agreement with Janssen Pharmaceutical NV, which includes potential milestone payments of up to 76millionforTARP8products[150].ThecompanywillpayJanssenatotalof76 million for TARP8 products[150]. - The company will pay Janssen a total of 5 million in upfront and option fees related to the TARP8 license agreement[150]. - The company emphasizes the importance of maintaining and defending its intellectual property rights to ensure commercial success[139]. Regulatory Considerations - The FDA requires completion of nonclinical tests, submission of an IND, and approval by an IRB before human clinical trials can begin[160]. - An IND becomes effective 30 days after submission unless the FDA raises concerns, which can lead to a clinical hold[162]. - The FDA aims to review NDAs for new molecular entities within 10 months, and priority review applications within 6 months[181]. - The FDA may grant accelerated approval for products that provide meaningful therapeutic advantages based on surrogate endpoints[182]. - The FDA may impose restrictions on marketing and distribution based on post-market studies, which can significantly affect market potential and profitability[188].