Procore signs multi-year strategic collaboration agreement with AWS
On Thursday, Rapt Therapeutics (NASDAQ:RAPT) received an upgrade from H.C. Wainwright, with the firm shifting its stance from Neutral to Buy and setting a new price target of $10.00. The stock has shown remarkable momentum, posting a 114% return over the past week, according to InvestingPro data, though analyst targets currently range between $2 and $4.
The upgrade follows a significant licensing agreement announced earlier this week between Rapt and Shanghai Jemincare Pharmaceutical (TADAWUL:2070) Co., Ltd., a subsidiary of Jiangxi Jemincare Group. This agreement grants Rapt exclusive rights to develop and commercialize the clinical-stage monoclonal antibody RPT904 outside of Greater China.
According to the terms of the license, Jemincare will receive a $35 million upfront fee, with the potential for up to $672.5 million in additional payments contingent on achieving various regulatory and commercial milestones. Moreover, Jemincare will earn royalties on future net sales of RPT904, ranging from single-digit to low double-digit percentages.
With a current market capitalization of just $60.48 million and a strong current ratio of 9.9, InvestingPro data shows RAPT maintains a solid balance sheet despite ongoing cash burn.
RPT904, which is currently being developed by Rapt, is poised to potentially offer a more effective treatment option compared to the currently approved anti-IgE monoclonal antibody, Xolair, marketed by Roche for various allergic disorders. Rapt's initial focus for RPT904 will be on food allergy, while Jemincare continues to advance Phase 2 clinical trials in China for asthma and chronic spontaneous urticaria (CSU).
The analyst at H.C. Wainwright cited the promising prospects of RPT904, particularly in the U.S. market for food allergy and CSU, as the rationale behind the upgraded rating and the newly established 12-month price target.
This strategic partnership and the potential of RPT904 to capture market share in the allergic disorder treatments space have contributed to the optimistic outlook for Rapt Therapeutics' stock. For deeper insights into RAPT's valuation and 12 additional ProTips, including detailed financial health metrics, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, RAPT Therapeutics (NASDAQ:RAPT) has entered an exclusive licensing agreement with Shanghai Jemincare Pharmaceutical, gaining worldwide rights to develop and commercialize RPT904, a clinical-stage anti-immunoglobulin E (IgE) monoclonal antibody. This deal comes with a $35 million upfront license fee and potential for up to $672.5 million in additional milestone payments. RAPT Therapeutics aims to develop RPT904 as a superior treatment option to omalizumab, with plans to initiate a Phase 2b clinical trial for food allergy treatment by the second half of 2025.
In the financial spectrum, RAPT Therapeutics reported a net loss of $0.47 per share for the third quarter of 2024, better than the analysts' projection of a net loss of $0.63 per share. H.C. Wainwright maintained a neutral rating on RAPT Therapeutics and adjusted its full-year 2024 net loss projection for the company to $2.56 per share, down from the previous estimate of $2.70 per share.
In an effort to retain talent, RAPT Therapeutics has implemented a repricing of certain stock options. The new exercise price has been set at $1.57 per share, contingent upon employees and consultants remaining with the company through a specified retention period.
Lastly, following the discontinuation of its drug, Zelnecirnon, and the shift in focus towards the development of next-generation CCR4 antagonists, several analysts have adjusted their ratings. Leerink Partners maintained a Market Perform rating, while Stifel downgraded RAPT Therapeutics from Buy to Hold, and JPMorgan downgraded the company's stock from Neutral to Underweight.
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