Executive Summary

Q3 showed materially lower OpEx and a narrower net loss as RAPT completed a 40% workforce reduction and wound down spend around halted programs; GAAP net loss improved to $18.4M (vs. $31.4M YoY) and EPS to $(0.47) (vs. $(0.82) YoY) on lower R&D ($13.3M vs. $27.0M YoY) and slightly lower G&A ($6.4M vs. $6.9M YoY) .
Liquidity remained adequate into year-end with $97.9M in cash and marketable securities at 9/30 (down from $114.8M at 6/30 and $141.6M at 3/31), reflecting continuing operating burn and restructuring costs .
The decisive termination of zelnecirnon (RPT193) following FDA feedback removes key AD/asthma uncertainty, pivots strategy to next‑gen CCR4 molecules, and sets a near-term catalyst: identify a new inflammatory candidate in H1’25; in-licensing is also an active vector .
No formal financial guidance or earnings call transcript was available; results are best viewed through the lens of cost realignment, pipeline reset, and cash runway management heading into 2025 .

What Went Well and What Went Wrong

What Went Well

Material OpEx reduction: R&D fell to $13.3M (from $27.0M YoY) as spend around zelnecirnon/tivumecirnon and early programs was curtailed; G&A decreased to $6.4M (from $6.9M YoY) .
Restructuring executed: 40% workforce reduction (47 employees) completed in Q3 with ~$0.9M cash restructuring charges, aligning costs to strategic reset .
Strategic clarity on pipeline: Terminated zelnecirnon after FDA feedback; management emphasized continued conviction in CCR4 biology and plans to nominate a next‑gen CCR4 candidate in H1’25, plus pursue in‑licensing opportunities. Quote: “We plan to continue advancing our next generation CCR4 compounds with improved safety margins … and expect to identify a new candidate in the first half of 2025” — Brian Wong, CEO .

What Went Wrong

Loss of lead inflammatory asset: FDA clinical hold (Feb’24) ultimately culminated in termination of zelnecirnon across AD and asthma, eliminating near‑term late‑stage readouts and extending timelines .
Continued cash burn: Cash/marketable securities declined to $97.9M at 9/30 from $114.8M at 6/30 and $141.6M at 3/31 despite cost cuts .
Limited external visibility: No guidance and no call transcript limit insight into timing, scope, and capital needs for next‑gen CCR4 and potential in‑licensing, increasing execution perception risk .

Financial Results

P&L snapshot (YoY and sequential context)

Metric	Q3 2023	Q1 2024	Q2 2024	Q3 2024
Research & Development ($M)	$27.0	$24.8	$22.6	$13.3
General & Administrative ($M)	$6.9	$7.7	$6.7	$6.4
Net Loss ($M)	$(31.4)	$(30.5)	$(27.7)	$(18.4)
Net Loss per Share (basic/diluted)	$(0.82)	$(0.79)	$(0.71)	$(0.47)
Other Income, net ($M)	$2.5	$2.0	$1.7	$1.4

Notes: RAPT reported no revenue line items in these periods (pre‑revenue clinical-stage profile) as evidenced by statements of operations listing operating expenses and other income only .

Liquidity and share base KPIs

KPI	Q1 2024	Q2 2024	Q3 2024
Cash & Marketable Securities ($M)	$141.6	$114.8	$97.9
Cash & Equivalents only ($M)	$45.3	$37.1	$37.9
Marketable Securities only ($M)	$96.3	$77.8	$60.0
Weighted Avg Shares (basic/diluted)	38,625,365	38,866,760	38,903,476
Restructuring Charges ($M)	—	—	~0.9

Q3 2024 vs. Estimates

Metric	Actual	Consensus (S&P Global)	Surprise
EPS	$(0.47)	n/a (unavailable at time of analysis)	n/a
Revenue	$0.0 (no revenue reported)	n/a (unavailable at time of analysis)	n/a

S&P Global Wall Street consensus data was not retrievable at the time of analysis; therefore, estimate comparisons are not provided.

Guidance Changes

RAPT did not provide formal financial guidance. Strategic/pipeline timing disclosures are summarized below.

Metric	Period	Previous Guidance	Current Guidance	Change
Zelnecirnon (RPT193) program	2024+	Under FDA clinical hold; analyzing Phase 2 data	Program terminated following FDA feedback	Lowered (terminated)
Next‑gen CCR4 (inflammatory)	H1 2025	Not previously specified	Identify a new candidate in H1 2025	New disclosure
Business development	Ongoing	Not previously specified	Actively pursuing in-licensing of clinical‑stage assets	New disclosure

Earnings Call Themes & Trends

(No Q3 call transcript available in our sources; themes derived from company disclosures.)

Topic	Previous Mentions (Q1 2024, Q2 2024)	Current Period (Q3 2024)	Trend
Regulatory/legal (FDA hold)	Q1: Closed/unblinded Phase 2 AD/asthma after FDA hold; analyzing data	Terminated zelnecirnon after FDA feedback	Hold → termination (resolution with asset discontinuation)
R&D execution (Inflammation)	Q2: Analysis of data expected “this quarter”	Pivot to next‑gen CCR4; new candidate expected H1’25	Focus shifts to new candidate nomination
R&D execution (Oncology/tivumecirnon)	Q2: Reduced spend on tivumecirnon	Lower R&D reflects reduced spend on zelnecirnon/tivumecirnon/early programs	De‑emphasis near‑term; reallocation potential pending
Cost management	Q2: Announced 40% workforce reduction, ~$0.9M charges expected	Restructuring completed; ~$0.9M charges incurred	Plan executed; cost base reset
Cash/liquidity	Q1: $141.6M at 3/31 ; Q2: $114.8M at 6/30	$97.9M at 9/30	Sequential decline, runway dependent on burn and BD

Management Commentary

Strategic pivot after FDA feedback: “In light of the agency’s feedback, we do not see a viable path forward for zelnecirnon … We plan to continue advancing our next generation CCR4 compounds with improved safety margins for inflammatory disease and expect to identify a new candidate in the first half of 2025. Additionally, we continue to actively pursue in‑licensing opportunities for clinical-stage assets.” — Brian Wong, M.D., Ph.D., President & CEO .
On data analysis prior to termination: “We continue to analyze the data from our two Phase 2 trials of zelnecirnon … We anticipate that our analysis of the data will be completed this quarter.” — Brian Wong (Q2 release) .
Q1 context as the hold began impacting operations: “We have decided to close and unblind both … trials … [after] FDA … hold … We are working … to clean the data and … anticipate … analysis … in the third quarter of this year.” — Brian Wong (Q1 release) .

Q&A Highlights

No earnings call transcript for Q3 2024 was available in our sources; key clarifications instead came via press releases: (1) zelnecirnon termination post‑FDA feedback ; (2) restructuring completion and charges ; (3) cash/marketable securities at $97.9M as of 9/30 .

Estimates Context

Wall Street consensus from S&P Global was unavailable at the time of analysis; as a clinical-stage, pre‑revenue company, RAPT’s quarter is principally evaluated on operating expense trajectory, pipeline status, and cash runway rather than revenue/margin beats .
Where estimate comparisons are typically provided (EPS, revenue), we did not include them due to lack of accessible S&P Global data at this time.

Key Takeaways for Investors

Cost reset is tangible: R&D and G&A declined YoY with restructuring completed in Q3; net loss narrowed meaningfully as spend around halted programs rolled off .
Pipeline clarity reduces binary risk around RPT193 but extends timelines; near‑term catalyst shifts to H1’25 nomination of a next‑gen CCR4 candidate and potential in‑licensing updates .
Liquidity is adequate into 2025 but trending down ($141.6M → $114.8M → $97.9M), making external BD or financing an important watch item depending on the pace of new program initiation .
With no revenue and no guidance, investor focus should remain on: (i) quality/safety margins of next‑gen CCR4, (ii) BD execution, and (iii) operating discipline sustaining reduced burn .
Stock reaction catalysts near term: formal next‑gen CCR4 candidate nomination (H1’25), any disclosed in‑licensing transactions, and clarity on oncology program prioritization .

Appendix: Source Documents

Q3 2024 8‑K and Exhibit 99.1 (press release with financial tables) .
Program termination press release (zelnecirnon) dated Nov 11, 2024 .
Prior quarters’ press releases/8‑Ks: Q2 2024 (Aug 8) ; Q1 2024 (May 9) .

RAPT Therapeutics, Inc. (RAPT)·Q3 2024 Earnings Summary