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RAPT Therapeutics Reports Fourth Quarter And Year End Financial Results


March 14, 2023

Company maintains strong cash position of $249.1 million

SOUTH SAN FRANCISCO, Calif., March 14, 2023 (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, 2022.

“2022 was an important year of progress, as we advanced both of our two lead programs, RPT193 and FLX475, in inflammatory disease and cancer, respectively,” said Brian Wong, M.D., Ph.D., President and Chief Executive Officer of RAPT Therapeutics. “This progress has positioned us for future milestones in 2023, including our anticipated initiation of a Phase 2a trial with RPT193 in asthma this quarter and a clinical data update from our ongoing Phase 2 trial of FLX475 in multiple cancer indications, which we are targeting for the second half of this year. For our Phase 2b trial of RPT193 in atopic dermatitis, we now expect topline results in mid-2024 due to recent slower than expected patient enrollment as we did not see the seasonal uptick that we anticipated. Our cash position is strong and we expect it to provide runway into mid-2025, well beyond the expected data readout.”

Financial Results for the Fourth Quarter and Year Ended December 31, 2022

Fourth Quarter Ended December 31, 2022

Net loss for the fourth quarter of 2022 was $23.0 million, compared to $17.9 million for the fourth quarter of 2021.

Research and development expenses for the fourth quarter of 2022 were $19.5 million, compared to $14.3 million for the same period in 2021. The increase in research and development expenses was primarily due to higher development costs related to RPT193 and FLX475, personnel and stock-based compensation expense.

General and administrative expenses for the fourth quarter of 2022 were $5.0 million, compared to $4.5 million for the same period in 2021. The increase in general and administrative expenses was primarily due to increases in expenses for personnel, stock-based compensation and facilities, partially offset by a decrease in professional services.

Year Ended December 31, 2022

Net loss for the year ended December 31, 2022 was $83.8 million, compared to $69.2 million in 2021.

Research and development expenses for the year ended December 31, 2022 were $67.1 million, compared to $57.0 million in 2021. The increase in research and development expenses was primarily due to higher development costs related to RPT193 and increases in expenses for early-stage programs, personnel and laboratory supplies, partially offset by decreases in development costs related to FLX475, facilities costs and stock-based compensation expense.

General and administrative expenses for the year ended December 31, 2022 were $20.2 million, compared to $16.0 million in 2021. The increase in general and administrative expenses was primarily due to increases in expenses for professional services, personnel, stock-based compensation and facilities.

As of December 31, 2022, the Company had cash, cash equivalents and marketable securities of $249.1 million. In December 2022, we completed an underwritten public offering of 4,338,104 shares of common stock and received approximately $75.0 million in net proceeds, after deducting underwriting discounts and other offering-related costs.

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, RPT193 and 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,” “could,” “expect,” “look forward,” “plan,” “target,” “will” 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 clinical development progress and the timing of initiation and completion of, and results from, clinical trials of RPT193 and FLX475 and our cash runaway. 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 may not be predictive of future data or results, may not demonstrate safety or efficacy or lead to regulatory approval, clinical trial site activation or enrollment rates that are lower than expected, including recent lower than expected enrollment in our Phase 2b clinical trial of RPT193 in AD, unanticipated or greater than anticipated impacts or delays due to macroeconomic conditions (including the long-term impacts of the COVID-19 pandemic, the conflict between Russia and Ukraine, inflation, rising 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 14, 2023 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,
 
    2022     2021     2022     2021  
Revenue   $     $ 756     $ 1,527     $ 3,813  
Operating expenses:                        
Research and development     19,454       14,299       67,082       56,985  
General and administrative     4,977       4,491       20,240       16,037  
Total operating expenses     24,431       18,790       87,322       73,022  
Loss from operations     (24,431 )     (18,034 )     (85,795 )     (69,209 )
Other income, net     1,480       105       1,957       5  
Net loss   $ (22,951 )   $ (17,929 )   $ (83,838 )   $ (69,204 )
Other comprehensive income (loss):                        
Foreign currency translation gain (loss)     (88 )     (23 )     627       258  
Unrealized gain (loss) on marketable securities     515       (228 )     (447 )     (287 )
Total comprehensive loss   $ (22,524 )   $ (18,180 )   $ (83,658 )   $ (69,233 )
Net loss per share, basic and diluted   $ (0.64 )   $ (0.61 )   $ (2.58 )   $ (2.53 )
Weighted average number of shares used in computing
net loss per share, basic and diluted
    35,689,363       29,539,031       32,540,406       27,390,326  


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

    December 31,
2022
    December 31,
2021
 
Assets   (Unaudited)     (1)  
Current assets:            
Cash and cash equivalents   $ 38,946     $ 24,027  
Marketable securities     210,122       165,627  
Prepaid expenses and other current assets     3,626       3,319  
Total current assets     252,694       192,973  
Property and equipment, net     2,539       2,741  
Operating lease right-of-use assets     6,940        
Other assets     4,036       2,922  
Total assets   $ 266,209     $ 198,636  
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $ 3,365     $ 1,999  
Accrued expenses     8,656       6,326  
Deferred revenue, current           1,016  
Operating lease liabilities, current     2,171        
Other current liabilities     32       254  
Total current liabilities     14,224       9,595  
Deferred revenue, non-current           511  
Deferred rent, net of current portion           2,150  
Operating lease liabilities, non-current     6,819        
Total liabilities     21,043       12,256  
Commitments            
Stockholders’ equity:            
Preferred stock            
Common stock     3       3  
Additional paid-in capital     613,073       470,629  
Accumulated other comprehensive loss     (26 )     (206 )
Accumulated deficit     (367,884 )     (284,046 )
Total stockholders’ equity     245,166       186,380  
Total liabilities and stockholders’ equity   $ 266,209     $ 198,636  

(1)    The consolidated balance sheet for December 31, 2021 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, 2021.



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