Why Has Rapt Therapeutics’ Stock Price Fluctuated Considerably Over The Last Two Weeks

by Trefis Team
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RAPT Therapeutics (NASDAQ:RAPT) is a U.S.-based clinical stage bio-pharma company working in oncology and inflammation therapies. The company, which went public in October 2019, saw its stock rally ~30% at the beginning of the month after it announced a collaboration agreement with South Korea-based Hanmi Pharmaceuticals for FLX475 in Asia. FLX475 is an oral, small molecule CCR4 antagonist in development for the treatment of multiple cancers. Under this agreement, RAPT would receive $10 million in an upfront payment and near-term milestone payment. Additionally, RAPT could potentially receive up to $48 million in success-based development milestones and up to $60 million in potential sales milestones, as well as double-digit royalties on any future sales.

However, the stock price corrected over subsequent days. Also, when RAPT reported its Q3 results earlier this week, a higher-than-expected loss for the period triggered a sell-off – sending its stock down to the same level it was at the beginning of the month.

We step back from these recent swings to review Rapt Therapeutics performance over the last few years, as a context for what might come next. Our interactive dashboard – What Has Moved Rapt Therapeutics’s Stock Over Recent Weeks? reviews the near term reasons and the big picture.

 

The context for the last few years:

A closer look At Rapt Therapeutics’ Total Revenues over the last few years and the outlook

Since the company is still in its initial stage of research & development and the company has not commercialized any drug, there are no revenues. First drug of the company is expected to be launched after 2020

 

A closer look At Rapt Therapeutics’ Total Expenses over the last few years and the outlook

Total Expense for Rapt Therapeutics substantially increased from $29.1 Mil in 2017 to $36.1 Mil in 2018; an increase of 24.1%. (On account of Higher spends on R&D) We expect Total Expense growth to be 12.2% in 2019. (On account of Higher spends on R&D)

 

How has  Rapt Therapeutics’ LBT trended?

LBT for Rapt Therapeutics increased substantially by 24.1% from $29.1 Mil in 2017 to $36.1 Mil in 2018. We expect LBT to be $40.5 Mil in 2019. (Since currently there is no revenue generated, LBT=Total Expenses)

 

How has Rapt Therapeutics’ Net Income and EPS trended?

For more details about Rapt Therapeutics’ Net Income and EPS, view our interactive dashboard analysis.

 

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