Trump/Cook, Nissan weakness, more tariffs and gold - what’s moving markets
On Thursday, H.C. Wainwright initiated coverage on Rapt Therapeutics (NASDAQ:RAPT) shares with a Buy rating and a price target set at $6.00. According to InvestingPro data, analyst targets for RAPT range from $2.00 to $10.00, with the stock currently trading at $0.89. The company has shown a notable 9.8% return over the past week, though it remains significantly below its 52-week high of $4.76. The firm’s analyst, Emily Bodnar, highlighted the therapeutic potential of Rapt’s primary candidate, RPT904, citing its improved pharmacokinetics (PK) and a mechanism of action that has been commercially validated. InvestingPro analysis reveals that while RAPT holds more cash than debt on its balance sheet, the company is quickly burning through cash - a critical factor for investors monitoring biotech developments. For deeper insights into RAPT’s financial health and 12 additional ProTips, consider exploring InvestingPro’s comprehensive research report.
RPT904 targets IgE, a critical component in allergic reactions, and is being considered for indications such as food allergy, asthma, and chronic spontaneous urticaria (CSU). These are conditions for which omalizumab, another anti-IgE antibody, has already been approved, thus reducing the risk associated with Rapt’s candidate. With a market capitalization of $117.47 million and a beta of -0.04, RAPT’s stock movements show low correlation with broader market trends, potentially offering portfolio diversification benefits.
Rapt acquired the rights outside China for RPT904 from Jemincare in December 2024 and is planning to start a Phase 2b trial for food allergy in the second half of 2025. Bodnar emphasized that RPT904 is an improved version of omalizumab, with a fourfold increase in affinity and modifications to enhance drug properties, including a longer half-life which could allow for less frequent dosing.
In a Phase 1 trial conducted in China by Jemincare, RPT904 demonstrated a 60-day half-life at a 150 mg dose, significantly longer than omalizumab’s 26-day half-life at the same dose. The candidate also showed improved serum concentration and a lower rate of free IgE, suggesting it could be more broadly applicable and potentially offer at least comparable efficacy with less frequent dosing.
Jemincare is currently conducting a Phase 2a asthma trial and a Phase 2 CSU trial for their version of the drug, JYB1904. The outcomes, expected in 2025, will offer a direct comparison to omalizumab and will also guide Rapt’s development of RPT904 in the U.S. for indications beyond food allergy.
In other recent news, Rapt Therapeutics has been the focus of analysts following its in-licensing agreement for RPT904/JYB1904. UBS analyst Eliana Merle revised the company’s stock target to $1.00 from $2.00, maintaining a Neutral rating. This adjustment reflects the integration of the RPT904 agreement into UBS’s financial model. Meanwhile, H.C. Wainwright & Co. reaffirmed their Buy rating and $10.00 price target, citing confidence in Rapt’s clinical development strategy and the potential of RPT904. The agreement with Shanghai Jemincare Pharmaceutical (TADAWUL:2070) Co., Ltd. grants Rapt exclusive rights to develop and commercialize RPT904 outside of Greater China, in exchange for a $35 million upfront fee and potential milestone payments. Rapt plans to initiate a Phase 2b trial for food allergy in the second half of 2025, with top-line data expected in early 2027. Jemincare is conducting Phase 2 trials in China for asthma and CSU, with results anticipated between 2025 and 2026. Rapt’s cash reserves of approximately $179 million are expected to support the company through the Phase 2b trial outcomes. This development is seen as a significant opportunity in the food allergy market, with an estimated 17 million potential patients in the U.S.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.