RAPT Therapeutics (RAPT) Stock

SOUTH SAN FRANCISCO, Calif., Dec. 23, 2024 (GLOBE NEWSWIRE) -- RAPT Therapeutics, Inc. (Nasdaq: RAPT), a clinical-stage, immunology-based therapeutics company focused on discovering, developing and commercializing novel therapies for patients with significant unmet needs in inflammatory diseases, today announced that it has entered into a securities purchase agreement with a group of accredited investors for the private placement of (i) 100,000,000 shares of common stock at a purchase price of $0.85 per share and (ii) to certain investors, in lieu of shares of common stock, pre-funded warrants to purchase up to 76,452,000 shares of common stock at a price per pre-funded warrant of $0.8499, for gross proceeds of approximately $150.0 million. The private placement is expected to close on or about December 27, 2024, subject to the satisfaction of customary closing conditions. The pre-funded warrants will have an exercise price of $0.0001 per share of common stock, be immediately exercisable and remain exercisable until exercised in full.

Rapt Therapeutics (RAPT) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.

RAPT Therapeutics' main drug candidate, zelnecirnon, is currently in phase 2 trials for atopic dermatitis and asthma. The phase 1b results for atopic dermatitis were very positive, and there is potential for expansion into other areas. A clinical hold was issued by the FDA due to a case of liver failure in a patient with a complicated medical history. RAPT had to unblind both ongoing phase 2 studies as a result. It is unlikely that zelnecirnon was the direct cause of the liver failure, as there are other possible explanations and no previous evidence of liver toxicity in preclinical or clinical studies.

The intense selling pressure for Rapt Therapeutics (RAPT) may have subsided as it is currently oversold. Furthermore, the consensus among analysts in raising earnings estimates suggests that the stock is ready for a turnaround.

RAPT Therapeutics (RAPT) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.

RAPT Therapeutics Inc. shares RAPT, +1.68% dropped more than 60% premarket on Tuesday after the company said regulators have hit pause on two clinical trials of its experimental inflammation treatment due to liver failure in a trial participant.

RAPT Therapeutics has solid data from early trials but has a habit of going down on good data. One reason could be that the stock is heavily institution-owned. Their next major catalyst is one year away.