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RAPT Therapeutics, Inc. (RAPT)·Q4 2024 Earnings Summary

Executive Summary

  • RAPT pivoted its strategy in Q4 with the in-licensing of RPT904 (half-life extended anti-IgE) and a $150M gross private placement, ending 2024 with $231.1M in cash and marketable securities; net loss widened to $53.2M, primarily due to the $35.0M upfront license fee .
  • Operating expenses rose sharply in Q4 (R&D $46.5M, G&A $8.0M), driving EPS to $(1.14) versus $(0.80) in Q4 2023; sequentially EPS declined from $(0.47) in Q3 as the license fee hit P&L .
  • Management expects to initiate a Phase 2b food allergy trial for RPT904 in H2 2025, while partner Jemincare expects Phase 2 asthma data in H2 2025 and CSU in H1 2026—key 2025–2026 catalysts that shape the equity narrative .
  • There was no formal Q4 2024 earnings call transcript available; management commentary was sourced from the Q4 press release and a March 12, 2025 Barclays fireside chat, which highlighted the long-acting anti-IgE strategy, market size, and cash runway to a 1H 2027 readout .

What Went Well and What Went Wrong

What Went Well

  • Strategic reset with RPT904: “Our focus for 2025 will be on advancing development of RPT904… We expect to initiate a Phase 2b clinical trial for RPT904 in food allergy in the second half of 2025” (Brian Wong, CEO) .
  • Strengthened balance sheet: Net proceeds of $143.0M from a December private placement drove cash/marketable securities to $231.1M at year-end 2024 .
  • Clear external validation: Jemincare has Phase 2 programs in asthma and CSU; PK/PD from Phase 1 showed >2x half-life vs. omalizumab, supporting less-frequent dosing ambitions—management reiterated this profile in March .

What Went Wrong

  • Elevated Q4 loss: Net loss increased to $53.2M due to the $35.0M upfront license fee; R&D spiked to $46.5M versus $26.8M YoY .
  • Program termination: Following FDA feedback, RAPT terminated zelnecirnon (RPT193), removing a once-core asset and underscoring development risk in CCR4 .
  • Estimates visibility: Wall Street consensus via S&P Global was unavailable at time of analysis, limiting immediate beat/miss framing relative to Q4 expectations.

Financial Results

Quarterly P&L and EPS (Sequential comparison)

MetricQ2 2024Q3 2024Q4 2024
Research & Development ($USD Millions)$22.64 $13.34 $46.46
General & Administrative ($USD Millions)$6.69 $6.45 $8.01
Total Operating Expenses ($USD Millions)$29.33 $19.79 $54.47
Other Income, net ($USD Millions)$1.67 $1.36 $1.22
Net Loss ($USD Millions)$(27.66) $(18.43) $(53.25)
Net Loss per Share, Basic & Diluted ($)$(0.71) $(0.47) $(1.14)
Weighted Avg Shares (Millions)38.87 38.90 46.69

Year-over-Year Q4 comparison

MetricQ4 2023Q4 2024
Research & Development ($USD Millions)$26.76 $46.46
General & Administrative ($USD Millions)$6.45 $8.01
Total Operating Expenses ($USD Millions)$33.22 $54.47
Other Income, net ($USD Millions)$2.34 $1.22
Net Loss ($USD Millions)$(30.88) $(53.25)
Net Loss per Share, Basic & Diluted ($)$(0.80) $(1.14)
Weighted Avg Shares (Millions)38.38 46.69

Liquidity and Capital

MetricQ2 2024Q3 2024Q4 2024
Cash & Cash Equivalents + Marketable Securities ($USD Millions)$114.8 $97.9 $231.1
Equity Raise / Private Placement——$150.0 gross; $143.0 net proceeds
License Upfront Payment (RPT904)——$35.0

Notes:

  • Revenue is not reported in these quarters; RAPT remains pre-commercial. Q4 2023 press release shows zero revenue for that quarter .

KPIs and Operational Changes

KPIQ2 2024Q3 2024Q4 2024
Workforce ReductionAnnounced plan to reduce ~40% (47 roles) with ~$0.9M restructuring charges estimated Plan completed; ~$0.9M charges incurred —
Program StatusAnalyzing unblinded zelnecirnon trials post FDA hold Continuing pipeline reprioritization Zelnecirnon program terminated (Nov 11)
Strategic Asset——RPT904 license; ex-China rights

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RPT904 Phase 2b (Food Allergy) initiationH2 2025Not previously guidedInitiate Phase 2b in H2 2025 New
Jemincare RPT904 Phase 2 toplines (Asthma, CSU)Asthma H2 2025; CSU H1 2026Not previously guidedAsthma H2 2025; CSU H1 2026 New
Cash Runway to Food Allergy readoutThrough 1H 2027Not previously guidedRunway to Phase 2b readout in 1H 2027 (CFO at Barclays) New

No quantitative revenue/margin/OpEx guidance was provided in Q4 materials; guidance is focused on clinical timelines and cash runway .

Earnings Call Themes & Trends

Note: No formal Q4 2024 earnings call transcript available. Themes derived from Q2/Q3 releases and 3/12/2025 Barclays fireside chat.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
RPT904 Strategy / Anti-IgE——In-licensed RPT904; plan H2 2025 Phase 2b; Jemincare Ph2 timelines New, core strategy
Zelnecirnon (RPT193) / FDA holdAnalyzing data; trials closed post-hold Cost controls; workforce reduction Program terminated after FDA feedback Concluded; risk crystallized
Funding & Liquidity$114.8M cash/securities $97.9M cash/securities $150M gross private placement; YE $231.1M cash/securities Strengthened
R&D ExecutionElevated spend (zelnecirnon) Lower R&D (post-hold, restructuring) R&D spike due to $35M license fee Volatile, pivot-driven
Market Opportunity (Food Allergy, CSU)——Large TAM; long-acting dosing benefits; payer willingness for premium (Barclays) Narrative building
Competitive Landscape——Omalizumab biosimilars; other anti-IgE (LP-003); KIT/BTK in CSU (Barclays) Increasing competition

Management Commentary

  • “Our focus for 2025 will be on advancing development of RPT904… We expect to initiate a Phase 2b clinical trial for RPT904 in food allergy in the second half of 2025” — Brian Wong, President & CEO .
  • “We got very excited about the food allergy space last year… RPT904, which is a long-acting anti-IgE omalizumab biobetter… we are planning to start a Phase IIb study in food allergy the second half of this year” — Brian Wong (Barclays, Mar 12, 2025) .
  • “One thing that’s really attractive… approximately 33 million Americans have some sort of food allergy… potential market opportunity of about $40 billion” — Rodney Young, CFO (Barclays) .
  • “Jemincare… Phase 1 showed… half-life of 60 days versus omalizumab… 26-day half-life… We can cover… patients with Q12-week dosing” — Brian Wong (Barclays) .
  • “Our runway… gets us to the readout, our Phase IIb food allergy readout in the first half of 2027” — Rodney Young (Barclays) .

Q&A Highlights

  • Dosing profile: Target Q12-week dosing across most patient cohorts based on PK/PD and modeling; potential inclusion of currently label-excluded high-IgE/high-weight patients .
  • Commercial dynamics: Prescribers and payers favor less frequent dosing; payers willing to reimburse at a premium relative to omalizumab biosimilars due to compliance/innovation benefits .
  • Competitive positioning: Acknowledges omalizumab biosimilars and other anti-IgE efforts; emphasizes omalizumab epitope matching to reduce technical risk; in CSU, KIT/BTK entrants may reshape sequencing based on risk-benefit .
  • Indication expansion: Prioritizing CSU; evaluating rhinitis, CRSwNP, asthma as broader opportunities after food allergy .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of this analysis due to data access limitations. Accordingly, explicit beat/miss versus consensus cannot be determined at this time.

Key Takeaways for Investors

  • Strategic pivot creates a clearer path: RPT904 in-licensing and termination of zelnecirnon concentrates resources on a clinically-validated mechanism with a differentiated dosing profile; watch for H2 2025 trial initiation and Jemincare readouts in 2025–2026 .
  • Near-term P&L volatility is transitory: The $35M license fee drove Q4 opex and EPS weakness; expect normalization absent additional BD deals, with focus shifting to trial set-up .
  • Strengthened cash runway: $231.1M YE cash/securities plus $143.0M net from the private placement supports development through the food allergy Phase 2b readout in 1H 2027—reducing financing overhang in the near term .
  • Dosing convenience may be a differentiator: If Q12-week dosing is validated, prescriber/payer enthusiasm could allow pricing at a premium to biosimilars, offsetting competitive pressure and supporting adoption .
  • Competitive watchlist: Track omalizumab biosimilar pricing, LP-003 progress, and CSU entrants (KIT/BTK) for positioning implications in urticaria; RAPT’s epitope strategy aims to limit technical risk .
  • Execution risks persist: Clinical timelines, regulatory interactions, and data quality remain central; termination of RPT193 underscores safety/regulatory risk in immunology assets .
  • Trading setup: 2025 catalysts skew to H2 (trial start, asthma Ph2 data); earlier narrative support from CSU enrollment progress and additional BD updates could affect sentiment; liquidity removes near-term financing uncertainty .

References:

  • Q4 2024 8-K and Exhibit 99.1 press release .
  • Q3 2024 press release and 8-K .
  • Q2 2024 8-K .
  • Q4 2023 8-K .
  • Jemincare license PR .
  • Private placement PR .
  • Barclays fireside chat transcript (Mar 12, 2025) .