SOUTH SAN FRANCISCO, Calif. - RAPT Therapeutics, Inc. (NASDAQ:RAPT), a biopharmaceutical company engaged in the development of treatments for inflammatory diseases, has announced an exclusive licensing agreement with Shanghai Jemincare Pharmaceutical (TADAWUL:2070) Co., Ltd. The company, which according to InvestingPro data maintains a strong liquidity position with a current ratio of 9.9x, is currently trading near its 52-week low. Under this agreement, RAPT obtains the global rights, excluding China and its territories, to develop and commercialize RPT904, a clinical-stage, extended half-life anti-IgE monoclonal antibody.
Jemincare, a subsidiary of China’s Jiangxi Jemincare Group, will receive an upfront payment of $35 million. Additional payments could reach up to $672.5 million based on regulatory and commercial milestones, along with royalties on future sales outside of Jemincare’s territories. This significant investment comes as RAPT’s financial metrics show the company is quickly burning through cash, with an EBITDA of -$113.6 million in the last twelve months.
RPT904 is being developed as a potential therapeutic improvement over omalizumab, currently approved for various allergic disorders. RAPT’s immediate focus for RPT904 is on food allergies, with plans to initiate a Phase 2b trial in the second half of 2025.
Jemincare is concurrently conducting Phase 2 trials in China for asthma and chronic spontaneous urticaria (CSU), with top-line data expected in the second half of 2025 and the first half of 2026, respectively.
Brian Wong, M.D., Ph.D., President and CEO of RAPT, expressed enthusiasm for the partnership with Jemincare and the potential of RPT904 to be a leading treatment for food allergies. The licensing agreement aims to address significant market opportunities identified following the recent approval of omalizumab for food allergies.
Jemincare has completed a Phase 1 study in China, comparing JYB1904 (the Jemincare designation for RPT904) to omalizumab and placebo. The study indicated favorable safety and pharmacokinetics for JYB1904, with an extended half-life and more sustained reduction of free IgE levels than omalizumab.
RAPT is hosting a webcast conference call today at 8:30 a.m. ET to discuss the agreement further. This announcement is based on a press release statement and includes forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. InvestingPro analysis reveals the company’s stock has experienced significant pressure, down over 96% YTD, though current valuations suggest potential upside. Discover more detailed insights and 14 additional ProTips with an InvestingPro subscription, including comprehensive analysis through the Pro Research Report available for RAPT and 1,400+ other US stocks.
In other recent news, Rapt Therapeutics has reported significant developments in its financial performance and operational changes. The company recently posted a net loss of $0.47 per share for the third quarter of 2024, notably better than the analysts’ projection of a net loss of $0.63 per share. Rapt Therapeutics’ research and development expenses amounted to $13.3 million, while selling, general, and administrative expenses were reported at $6.4 million.
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. However, the firm expressed concerns regarding the future of Rapt Therapeutics, particularly due to the termination of the zelnecirnon program.
Rapt Therapeutics has also implemented a repricing of certain stock options to incentivize staff without the need for additional equity grants or increased cash compensation. 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.
Analysts from 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. These changes followed the discontinuation of the company’s drug, Zelnecirnon, and the shift in focus towards the development of next-generation CCR4 antagonists.
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