Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

• Market Cap: $354.75M
• Dividend Yield: N/A
• Average Volume (3M): 303.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 58
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -2.14
• Shares Outstanding: 36,496,437
• 10 Day Avg. Volume: 382,431
• 30 Day Avg. Volume: 303,399
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): -5.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $38.50
• Price Target Upside: 296.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Rapport Therapeutics, Inc. faces significant challenges with no revenue and substantial operational losses despite strong equity financing and low leverage. Technical indicators point to a downward trend, and valuation is difficult to ascertain. Positive clinical trial results offer some optimism, but leadership changes contribute to uncertainty.

Positive Factors

Clinical Trials

RAP-219 is advancing into and through the clinic as expected, which is encouraging for the company's progress.

Financial Position

RAPP has a cash position of $305.3M, providing financial runway for ongoing operations and trials.

Trial Design and Efficacy

The trial design for RAP-219 in focal epilepsy is considered superior by surveyed experts compared to traditional designs.

Negative Factors

Management Changes

Bradley Galer stepped down as Chief Medical Officer and the company is searching for his successor.

Regulatory Hold

IND application for Phase IIa trial of RAP-219 in diabetic peripheral neuropathic pain placed on clinical hold by the FDA.

Rapport Therapeutics, Inc. Business Overview & Revenue Model

Company Description

Rapport Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery and development of small molecule medicines for patients suffering from central nervous system (CNS) disorders. Its lead product candidate is receptor associated protein (RAP)-219, an investigational small molecule that is designed to inhibit TARPy8-containing AMPARs with picomolar affinity for the treatment of focal epilepsy and other CNS disorders, including peripheral neuropathic pain and bipolar disorder. The company also develops RAP-199, a TARPy8 targeted molecule with differentiated chemical and pharmacokinetic properties; and nicotinic acetylcholine receptor (nAChR) programs, such as a6 nAChR to treat chronic pain and a9a10 nAChR for the treatment of hearing disorders. Rapport Therapeutics, Inc. was incorporated in 2022 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

Rapport Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary small molecule therapeutics. The company's revenue model includes milestone payments and royalties from partnerships with larger pharmaceutical companies that collaborate on the development and distribution of its drugs. Additionally, Rapport may receive funding from grants or research collaborations aimed at advancing its drug discovery platform. As its therapies progress through clinical trials and receive regulatory approvals, the company anticipates revenue from sales and licensing agreements. The success of its revenue model heavily depends on the clinical and commercial success of its product candidates and the strength of its strategic partnerships.

Rapport Therapeutics, Inc. Financial Statement Overview

Summary

Rapport Therapeutics, Inc. shows strong equity financing and low leverage, which supports its financial stability despite the absence of revenue and increasing operational losses. The biotech sector's nature, with its reliance on external financing for research, poses risks if funding sources change. Continued focus on innovation and achieving revenue milestones is critical for future financial health.

Income Statement

Rapport Therapeutics, Inc. has reported no revenue for the past three years, with increasing losses, as evidenced by the rising net loss from $10.65 million in 2022 to $78.31 million in 2024. This indicates a challenging revenue generation environment, common in early-stage biotech companies focused on research and development without commercial products.

Balance Sheet

The company maintains a strong equity position with stockholders' equity increasing from $19.51 million in 2022 to $305.43 million in 2024. The low debt levels, with a debt-to-equity ratio of approximately 0.005, suggest financial stability. However, the lack of revenue generation poses a risk to long-term sustainability if financing sources diminish.

Cash Flow

Operating cash flow has significantly deteriorated, with free cash flow going from -$3.53 million in 2022 to -$67.23 million in 2024. The heavy reliance on financing cash flows, notably a $221.63 million inflow in 2024, supports operations but highlights the potential cash flow challenges if external funding becomes scarce.

Breakdown
Dec 2024	Dec 2023	Dec 2022
Income Statement		Total Revenue
0.00	0.00	0.00
	Gross Profit
0.00	-112.00K	-15.00K
	EBIT
-83.06M	-36.18M	-10.37M
	EBITDA
-83.06M	-34.66M	-10.35M
	Net Income Common Stockholders
-78.31M	-34.79M	-10.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
305.28M	147.56M	31.16M
	Total Assets
314.93M	155.42M	31.60M
	Total Debt
1.48M	2.15M	0.00
	Net Debt
-55.33M	-68.02M	-31.16M
	Total Liabilities
9.51M	14.48M	12.10M
	Stockholders Equity
305.43M	140.94M	19.50M
Cash Flow		Free Cash Flow
-67.23M	-28.82M	-3.53M
	Operating Cash Flow
-64.83M	-27.18M	-3.24M
	Investing Cash Flow
-170.14M	-78.86M	-5.28M
	Financing Cash Flow
221.63M	145.14M	39.69M

Rapport Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	77 Outperform	$2.80B	12.35	38.89%	―	31.85%	―
NBIX	68 Neutral	$11.16B	34.01	14.16%	―	24.81%	33.67%
PTCT	56 Neutral	$4.51B	―	33.08%	―	-13.97%	43.51%
Sector *	55 Neutral	$4.57B	-18.49	-4.70%	5.70%	27.38%	-68.17%
SAGE	48 Neutral	$498.00M	―	-63.37%	―	-52.30%	27.13%
RAPP	44 Neutral	$354.75M	―	-24.68%	―	―	―
BHVN	37 Underperform	$2.91B	―	-198.83%	―	―	-65.63%

Rapport Therapeutics, Inc. Corporate Events

Rapport Therapeutics Appoints New CMO Amid Phase 2a Updates

On March 3, 2025, Rapport Therapeutics announced the appointment of Jeffrey Sevigny as Chief Medical Officer and provided updates on its Phase 2a trials for RAP-219 in refractory focal epilepsy and bipolar mania. The company expects to report topline results for the epilepsy trial in the third quarter of 2025 and plans to initiate a trial for bipolar mania in the same period, with results anticipated in the first half of 2027. These developments are significant for Rapport’s operational focus and strategic positioning in the neuroscience market.

Rapport Therapeutics’ Promising Trial Results and Leadership Change

Rapport Therapeutics announced promising results from its PET and MAD-2 trials for RAP-219, a potential treatment for CNS disorders like focal epilepsy. The trials demonstrated that RAP-219 achieved target receptor occupancy within five days, maintained a favorable tolerability profile, and showed no sedation or motoric impairments. These findings support the dosing regimen for the ongoing Phase 2a trial in focal epilepsy, expected to report topline data in mid-2025. The announcement also noted a leadership change with the departure of Chief Medical Officer Bradley Galer, M.D.