Guggenheim Downgrades Rapt Therapeutics (RAPT) to Neutral

Guggenheim analyst Yatin Suneja downgraded Rapt Therapeutics (NASDAQ: RAPT) from Buy to Neutral.

The analyst comments "Key takeaways from our call with RAPT mgmt. include: (1) database cleaning is underway for both atopic dermatitis and asthma studies of RPT-193 (oral CCR4 blocker; recall that in Feb 2024, both clinical studies were put on clinical hold following a case of liver failure in one patient). We expect the company to conclude data analysis in the next two months, as we believe it is their top priority (official guidance is by 3Q24). RAPT will then engage with the FDA to determine the path forward, per mgmt; (2) the FDA has issued a deficiency letter, of which RAPT did not disclose much other than that “there is a path to address the deficiencies”. Mgmt emphasized that the FDA did not require the unblinding of the study, and it was a decision taken by the company in order to have more detailed data, which should facilitate more informed discussion with the FDA; (3) The company has $141.6MM in cash, which we believe should provide runway for at least 12 months. Given the lack of clarity on the path forward for RPT-193 and on the requirements to lift the clinical hold, we are downgrading to Neutral and removing our PT (previously $48)."

For an analyst ratings summary and ratings history on Rapt Therapeutics click here. For more ratings news on Rapt Therapeutics click here.

Shares of Rapt Therapeutics closed at $7.98 yesterday.

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