RAPT Therapeutics Reports Fourth Quarter and Full Year 2023 Financial Results

health news

Company maintains solid cash position of $158.9 million

SOUTH SAN FRANCISCO, Calif., March 07, 2024 (GLOBE NEWSWIRE) — RAPT Therapeutics, Inc. (Nasdaq: RAPT), a clinical-stage, immunology-based therapeutics company focused on discovering, developing and commercializing oral small molecule therapies for patients with significant unmet needs in inflammatory diseases and oncology, today reported financial results for the fourth quarter and year ended December 31, 2023.

“We are working diligently to lift the clinical hold on our Phase 2 trials of zelnecirnon in atopic dermatitis and asthma,” said Brian Wong, M.D., Ph.D., President and Chief Executive Officer of RAPT Therapeutics. “Patient safety is our top priority. We expect to provide an update once we have defined a plan to move ahead and appreciate your patience during this process. Separately, our Phase 2 study of tivumecirnon in cancer is ongoing and we will be presenting an update at AACR in April.”

Financial Results for the Fourth Quarter and the Year Ended December 31, 2023

Fourth Quarter Ended December 31, 2023

Net loss for the fourth quarter of 2023 was $30.9 million, compared to $23.0 million for the fourth quarter of 2022.

Research and development expenses for the fourth quarter of 2023 were $26.8 million, compared to $19.5 million for the same period in 2022. The increase in research and development expenses was primarily due to higher development costs related to zelnecirnon, as well as increased expenses for personnel, lab supplies, consultants, facilities and stock-based compensation, partially offset by lower development costs related to tivumecirnon and early-stage programs.

General and administrative expenses for the fourth quarter of 2023 were $6.5 million, compared to $5.0 million for the same period in 2022. The increase in general and administrative expenses was primarily due to increases in expenses for personnel, stock-based compensation and facilities.

Year Ended December 31, 2023

Net loss for the year ended December 31, 2023 was $116.8 million, compared to $83.8 million in 2022.

Research and development expenses for the year ended December 31, 2023 were $101.0 million, compared to $67.1 million in 2022. The increase in research and development expenses was primarily due to higher development costs related to zelnecirnon, as well as increased expenses for personnel, lab supplies, consultants, facilities and stock-based compensation, partially offset by lower development costs related to tivumecirnon and early-stage programs.

General and administrative expenses for the year ended December 31, 2023 were $26.1 million, compared to $20.2 million in 2022. The increase in general and administrative expenses was primarily due to increases in expenses for personnel, stock-based compensation, facilities and professional services.

As of December 31, 2023, the Company had cash and cash equivalents and marketable securities of $158.9 million.

About RAPT Therapeutics, Inc.

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “expect,” “plan,” “target” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These statements relate to future events and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future performances or achievements expressed or implied by the forward-looking statements. Each of these statements is based only on current information, assumptions and expectations that are inherently subject to change and involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements about the therapeutic potential of RAPT’s product candidates, clinical development progress and the timing of initiation, enrollment and completion of, and availability of results from, clinical trials of zelnecirnon (RPT193) and tivumecirnon (FLX475), RAPT’s expectations concerning the clinical hold of its Phase 2 trials of zelnecirnon, including its investigation of the incident, its ability to resolve issues to the FDA’s satisfaction and the availability of updates concerning such process, and other statements that are not historical fact. Many factors may cause differences between current expectations and actual results, including unexpected or unfavorable safety or efficacy data observed during clinical studies, preliminary data and trends that may not be predictive of future data or results or that may not demonstrate safety or efficacy or lead to regulatory approval, the inability to resolve issues related to the clinical hold on the Phase 2 trials of zelnecirnon to the FDA’s satisfaction and to ultimately resume such trials, clinical trial site activation or enrollment rates that are lower than expected, including lower than expected enrollment in our Phase 2b clinical trial of zelnecirnon in AD, unanticipated or greater than anticipated impacts or delays due to macroeconomic conditions (including the long-term impacts of ongoing overseas conflicts, inflation, higher interest rates and other economic uncertainty), changes in expected or existing competition, changes in the regulatory environment, the uncertainties and timing of the regulatory approval process and the sufficiency of RAPT’s cash resources. Detailed information regarding risk factors that may cause actual results to differ materially from the results expressed or implied by statements in this press release may be found in RAPT’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2024 and subsequent filings made by RAPT with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. RAPT disclaims any obligation to update these forward-looking statements, except as required by law.

RAPT Media Contact:
Aljanae Reynolds
areynolds@wheelhouselsa.com

RAPT Investor Contact:
Sylvia Wheeler
swheeler@wheelhouselsa.com

RAPT THERAPEUTICS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share per share data)
(Unaudited)

    Three Months Ended
December 31,
    Three Months Ended
December 31,
    Year Ended
December 31,
    Year Ended
December 31,
 
    2023     2022     2023     2022  
Revenue   $     $     $     $ 1,527  
Operating expenses:                        
Research and development     26,764       19,454       101,002       67,082  
General and administrative     6,453       4,977       26,060       20,240  
Total operating expenses     33,217       24,431       127,062       87,322  
Loss from operations     (33,217 )     (24,431 )     (127,062 )     (85,795 )
Other income, net     2,341       1,480       10,264       1,957  
Net loss   $ (30,876 )   $ (22,951 )   $ (116,798 )   $ (83,838 )
Other comprehensive income (loss):                        
Foreign currency translation gain (loss)           (88 )     (655 )     627  
Unrealized gain (loss) on marketable securities     224       515       784       (447 )
Total comprehensive loss   $ (30,652 )   $ (22,524 )   $ (116,669 )   $ (83,658 )
Net loss per share, basic and diluted   $ (0.80 )   $ (0.64 )   $ (3.05 )   $ (2.58 )
Weighted average number of shares used in computing
   net loss per share, basic and diluted
    38,383,867       35,689,363       38,338,161       32,540,406  


RAPT THERAPEUTICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

    December 31,
2023
    December 31,
2022
 
Assets   (Unaudited)     (1)  
Current assets:            
Cash and cash equivalents   $ 47,478     $ 38,946  
Marketable securities     111,384       210,122  
Prepaid expenses and other current assets     2,920       3,626  
Total current assets     161,782       252,694  
Property and equipment, net     2,448       2,539  
Operating lease right-of-use assets     5,228       6,940  
Other assets     3,871       4,036  
Total assets   $ 173,329     $ 266,209  
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $ 5,176     $ 3,365  
Accrued expenses     14,103       8,656  
Operating lease liabilities, current     2,448       2,171  
Other current liabilities     109       32  
Total current liabilities     21,836       14,224  
Operating lease liabilities, non-current     4,458       6,819  
Total liabilities     26,294       21,043  
Commitments            
Stockholders’ equity:            
Preferred stock            
Common stock     3       3  
Additional paid-in capital     631,611       613,073  
Accumulated other comprehensive gain (loss)     103       (26 )
Accumulated deficit     (484,682 )     (367,884 )
Total stockholders’ equity     147,035       245,166  
Total liabilities and stockholders’ equity   $ 173,329     $ 266,209  

(1) The consolidated balance sheet for December 31, 2022 has been derived from audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.