Rapport Therapeutics Reports $78.3 Million Net Loss for 2024, Increases R&D Spending

Rapport Therapeutics, Inc., a clinical-stage biotechnology company focused on neurological and psychiatric disorders, reported a net loss of $78.3 million for the year ended December 31, 2024, compared to a net loss of $34.8 million in 2023. Research and development expenses increased significantly from $28.0 million to $60.9 million, driven by increased clinical trial costs for RAP-219, their lead product candidate, and expansion of preclinical programs. General and administrative expenses also rose from $8.2 million to $22.1 million, primarily due to increased personnel costs and expenses associated with operating as a public company. The company's cash, cash equivalents, and short-term investments totaled $305.3 million as of December 31, 2024.

Significant developments during the year included the completion of four Phase 1 trials for RAP-219 in healthy adult volunteers, including a positron emission tomography (PET) trial confirming brain target receptor occupancy. The company initiated a Phase 2a proof-of-concept trial for RAP-219 in adult patients with refractory focal epilepsy, with topline results expected in the third quarter of 2025. A planned Phase 2a trial in bipolar mania is slated to begin in the third quarter of 2025, with results anticipated in the first half of 2027. However, the FDA placed a clinical hold on a Phase 2a trial of RAP-219 for diabetic peripheral neuropathic pain (DPNP) in the fourth quarter of 2024, requesting additional information. Further development of RAP-199 was deferred to prioritize RAP-219.

The company also advanced two discovery-stage nicotinic acetylcholine receptor (nAChR) programs, targeting α6 nAChRs for chronic pain and α9α10 nAChRs for hearing disorders. Rapport entered into a license agreement with Janssen Pharmaceutical NV in August 2022, receiving exclusive rights to develop and commercialize certain TARPγ8 products, including RAP-219, and a non-exclusive license for certain nACh products. A collaboration with NeuroPace Inc. was established in November 2023 to leverage data from the RNS system in the Phase 2a trial for RAP-219 in refractory focal epilepsy. As of December 31, 2024, Rapport employed 69 full-time employees.

The company's financial outlook anticipates continued significant losses for the foreseeable future, with expenses expected to increase as clinical trials progress and commercialization efforts begin. Funding is projected to be sufficient through the end of 2026 based on current plans, but additional financing may be sought. The company highlighted numerous risks, including those related to clinical trial success, regulatory approvals, market competition, intellectual property protection, and the need for additional funding. The company also noted the uncertainties inherent in the biotechnology industry and the potential for significant fluctuations in operating results.