RAPT Therapeutics Inc Reports Increased R&D Expenses Amid Progress in Clinical Trials
Net loss for Q3 2023 expanded to $31.4 million from $21.2 million in Q3 2022.
Research and development expenses rose significantly due to higher development costs for zelnecirnon.
Company maintains a robust cash position of $184.8 million, expecting to fund operations through mid-2025.
Top-line data from Phase 2b trial of zelnecirnon in atopic dermatitis expected in mid-2024.
On November 13, 2023, RAPT Therapeutics Inc (NASDAQ:RAPT) released its 8-K filing, detailing its financial results for the third quarter and the nine months ended September 30, 2023. The clinical-stage immunology-based therapeutics company reported a net loss of $31.4 million for the third quarter, a significant increase from the $21.2 million loss in the same period last year. This was largely due to increased research and development expenses, which totaled $27.0 million for the quarter, up from $16.6 million in the third quarter of 2022.
Financial Highlights and Clinical Progress
For the nine months ended September 30, 2023, RAPT Therapeutics saw its net loss widen to $85.9 million from $60.9 million in the same period the previous year. The company attributed the rise in research and development expenses, which reached $74.2 million, to the higher costs associated with the development of zelnecirnon for inflammatory diseases and early-stage programs, along with increased personnel expenses, lab supplies, consulting, facilities, and stock-based compensation expenses.
General and administrative expenses also saw an uptick, reaching $6.9 million for the quarter and $19.6 million for the nine-month period, compared to $5.1 million and $15.3 million, respectively, for the same periods in 2022. These increases were primarily due to higher personnel costs, stock-based compensation, and facilities expenses.
Balance Sheet and Future Outlook
Despite the increased expenses, RAPT Therapeutics maintains a strong cash position, with cash, cash equivalents, and marketable securities totaling $184.8 million as of September 30, 2023. The company's President and CEO, Brian Wong, M.D., Ph.D., expressed confidence in the company's financial standing, stating that the current cash balance is expected to support planned operations through mid-2025.
Dr. Wong also highlighted the company's clinical advancements, including the anticipated reporting of top-line data from the Phase 2b trial of zelnecirnon in atopic dermatitis by mid-2024 and the enrollment progress in the Phase 2a trial in asthma. Additionally, he noted the presentation of promising Phase 2 data for tivumecirnon in combination with pembrolizumab in checkpoint-naive non-small cell lung cancer at the Society for Immunotherapy of Cancer (SITC) conference.
Comprehensive Financial Tables
The earnings report included detailed financial tables, which showed a comprehensive loss of $31.312 million for the third quarter and $86.017 million for the nine-month period. The consolidated balance sheets revealed that the company's total assets stood at $199.721 million as of September 30, 2023, with a total stockholders' equity of $172.800 million.
In summary, RAPT Therapeutics Inc (NASDAQ:RAPT) is navigating through a period of increased investment in research and development, which is reflected in the widened net loss. However, the company's strong cash reserves and promising clinical trial advancements offer a positive outlook for its operations and potential for future growth.
For a more detailed breakdown of RAPT Therapeutics Inc's financials and future prospects, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from RAPT Therapeutics Inc for further details.
This article first appeared on GuruFocus.
