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RAPT Therapeutics Reports Third Quarter 2020 Financial Results

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SOUTH SAN FRANCISCO, Calif., Nov. 16, 2020 (GLOBE NEWSWIRE) -- RAPT Therapeutics, Inc. (NASDAQ:RAPT), a clinical-stage, immunology-based biopharmaceutical company focused on discovering, developing and commercializing oral small molecule therapies for patients with significant unmet needs in oncology and inflammatory diseases, today reported financial results for the third quarter ended September 30, 2020 and provided an update on recent operational and business progress.

"Earlier today, we reported positive initial data from our ongoing Phase 1/2 clinical trial evaluating FLX475 in multiple cancer indications," said Brian Wong, M.D., Ph.D., President and CEO of RAPT Therapeutics. "With the advancement of this program and continued enrollment for our ongoing Phase 1b study of RPT193 in atopic dermatitis, which we now expect to read out in the first half of 2021, we are well positioned for multiple catalysts in 2021."

Financial Results for the Third Quarter and Nine Months Ended September 30, 2020

Third Quarter Ended September 30, 2020
Net loss for the third quarter of 2020 was $14.6 million, compared to $10.0 million for the third quarter of 2019.

Research and development expenses for the third quarter of 2020 were $12.9 million, compared to $8.6 million for the same period in 2019 due to increased clinical costs for FLX475 and RPT193, increased personnel costs and stock-based compensation expense, an increase in preclinical program costs and laboratory supplies.

General and administrative expenses for the third quarter of 2020 were $3.2 million, compared to $1.7 million for the same period of 2019. The increase was primarily due to an increase in stock-based compensation expense, personnel costs, legal and accounting fees and insurance expense offset by a decrease in consulting costs.

Nine Months Ended September 30, 2020
Net loss for the nine months ended September 30, 2020 was $40.2 million, compared to $29.8 million for the same period in 2019.

Research and development expenses for the nine months ended September 30, 2020 were $34.6 million, compared to $24.7 million for the same period in 2019. The increase was primarily due to an increase in clinical costs relating to FLX475 and RPT193, increased preclinical program costs as well as increased stock-based compensation and personnel expenses, offset by decreases in lab supplies and travel costs.

General and administrative expenses for the nine months ended September 30, 2020 were $9.3 million, compared to $6.1 million for the same period of 2019. The increase in general and administrative expenses was primarily due to increased stock-based compensation expense, increased personnel costs, an increase in legal and accounting fees as well as insurance expense offset by a decrease in travel and consulting costs.

As of September 30, 2020, we had cash and cash equivalents and marketable securities of $122.8 million.

About RAPT Therapeutics, Inc.
RAPT Therapeutics is a clinical stage immunology-based biopharmaceutical company focused on discovering, developing and commercializing oral small molecule therapies for patients with significant unmet needs in oncology and inflammatory diseases. 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, FLX475 and RPT193, each targeting C-C motif chemokine receptor 4 (CCR4), for the treatment of cancer and inflammation, respectively. The Company is also pursuing a range of targets, including hematopoietic progenitor kinase 1 (HPK1) and general control nonderepressible 2 (GCN2), that are in the discovery stage of development.

Forward-Looking Statements
This press release contains 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 results from clinical trials of FLX475 and RPT193. 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 most recent Form 10-Q filed with the Securities and Exchange Commission 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.

RAPT Media Contact:
Angela Bitting
media@rapt.com
(925) 202-6211

RAPT Investor Contact:
Sylvia Wheeler
swheeler@wheelhouselsa.com


 

RAPT THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share data)
(Unaudited)
                 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
      2020       2019       2020       2019  
                 
Revenue   $ 1,528     $     $ 3,740     $  
                 
Operating expenses:                
Research and development     12,912       8,582       34,581       24,720  
General and administrative     3,197       1,733       9,288       6,094  
Total operating expenses     16,109       10,315       43,869       30,814  
Loss from operations     (14,581 )     (10,315 )     (40,129 )     (30,814 )
Other income, net     237       344       763       1,033  
                 
Net loss before taxes     (14,344 )     (9,971 )     (39,366 )     (29,781 )
Provision for income taxes     287             791        
Net loss     (14,631 )     (9,971 )     (40,157 )     (29,781 )
Other comprehensive income (loss):                
Foreign currency translation adjustment     (70 )     15       (65 )     17  
Unrealized gain on marketable securities     (33 )           119        
Total comprehensive loss   $ (14,734 )   $ (9,956 )   $ (40,103 )   $ (29,764 )
Net loss per share, basic and diluted   $ (0.60 )   $ (12.41 )   $ (1.67 )   $ (40.15 )
Weighted average number of shares used in computing net loss per share, basic and diluted     24,449,115       803,229       23,989,926       741,711  
                 



RAPT THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
         
    September 30,   December 31,
      2020       2019  
Assets        
Current assets:        
Cash and cash equivalents   $ 20,229     $ 77,383  
Marketable securities     102,557        
Prepaid expenses and other current assets   2,722       3,123  
Total current assets     125,508       80,506  
Property and equipment, net     3,073       3,707  
Other assets     389       389  
Total assets   $ 128,970     $ 84,602  
Liabilities and stockholders' equity        
Current liabilities:        
Accounts payable   $ 4,405     $ 1,143  
Accrued expenses     5,669       3,642  
Deferred revenue     5,128       4,000  
Other current liabilities     389       471  
Total current liabilities     15,591       9,256  
Deferred rent, net of current portion     2,200       2,225  
Deferred revenue, non-current     1,132        
Commitments        
Stockholders' equity:        
Common stock     2       2  
Additional paid-in capital     312,078       235,049  
Accumulated other comprehensive income   74       20  
Accumulated deficit     (202,107 )     (161,950 )
Total stockholders' equity     110,047       73,121  
Total liabilities and stockholders' equity   $ 128,970     $ 84,602  


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