RAPT Therapeutics, Inc., a clinical-stage biopharmaceutical company that is dedicated to developing innovative oral small molecule therapies to address unmet needs in inflammatory diseases and oncology, announced its financial results for the fourth quarter and year ending December 31, 2022. The company has made tremendous strides in its mission to develop treatments that can improve the lives of patients with serious and difficult-to-treat conditions.
2022 was a pivotal year for RAPT Therapeutics, with significant progress made across both its lead programs, RPT193 and FLX475, in inflammatory disease and cancer respectively. In 2023, the company plans to initiate a Phase 2a trial with RPT193 in asthma and expects to share clinical data from its ongoing Phase 2 trial of FLX475 in multiple cancer indications by the second half of the year. Additionally, while the enrollment process for the Phase 2b trial of RPT193 in atopic dermatitis has been slower than anticipated and topline data is now expected in mid-2024, the company has a strong cash position that is expected to provide runway into mid-2025.
Financial Results for the Fourth Quarter and Year Ended December 31, 2022
The fourth quarter of 2022 saw a net loss of $23.0 million, a stark contrast to the $17.9 million loss reported in the same period of 2021.
Research and development expenses for the fourth quarter of 2022 saw a dramatic increase of $5.2 million compared to the same period in 2021, driven largely by higher development costs related to RPT193 and FLX475, personnel and stock-based compensation expenses. This marked a 36% increase in R&D investment, indicative of the organization’s commitment to pushing the boundaries of innovation and setting the stage for further success.
General and administrative expenses for the fourth quarter of 2022 rose to $5.0 million, a 10% increase from $4.5 million in 2021. This uptick was attributed to higher personnel and stock-based compensation costs, as well as increased facility expenses. However, professional services expenses were lower in comparison.
For the year ended December 31, 2022, the net loss was $83.8 million, a stark contrast to the $69.2 million in net losses reported the year prior.
Research and development expenditures for the year ending December 31, 2022 amounted to an impressive $67.1 million, a notable increase from the previous year’s $57.0 million. This surge in expenditure was driven by the growth in development costs associated with RPT193, in addition to increased expenses for early-stage programs, personnel and laboratory supplies. The hike in research and development costs was counterbalanced by a reduction in development costs related to FLX475, facilities costs, and stock-based compensation expenses.
The year ended December 31, 2022 saw a substantial increase in general and administrative expenses, rising from $16.0 million in 2021 to $20.2 million. This was mainly attributed to higher spending on professional services, personnel, stock-based compensation, and facilities.
At the end of 2022, the Company had $249.1 million in cash, cash equivalents, and marketable securities. In December of that year, we raised an additional $75.0 million through an underwritten public offering of 4,338,104 shares of common stock. The net proceeds, after deducting underwriting discounts and other offering-related costs, were a welcomed addition to our already sizable treasury.
About RAPT Therapeutics, Inc.
RAPT Therapeutics is revolutionizing the way we treat inflammatory diseases and oncology. With its proprietary discovery and development engine, the company is unlocking powerful small molecules that are carefully designed to target the critical immune drivers. Their two unique drug candidates, RPT193 and FLX475, target C-C motif chemokine receptor 4 (CCR4) and are being developed to treat inflammation and cancer respectively. RAPT is also actively exploring new potential targets to expand its offerings.