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Rapport Therapeutics, Inc. (RAPP)
NASDAQ:RAPP
US Market
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Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

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RAPP

Rapport Therapeutics, Inc.

(NASDAQ:RAPP)

Rating:44Neutral
Price Target:
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 Trial Progress
The Phase IIa trial of RAP-219 in refractory focal epilepsy has completed enrollment with 30 patients and topline results are expected.
Drug Efficacy
RAP-219's precise targeting of areas associated with seizure activity eliminates off-target toxicity observed in current anti-epileptic drugs.
Market Interest
RAPP over-enrolled the ph2a due to greater-than-expected patient demand, and they'll now be presenting data of 30 FOS-patients, suggesting strong interest and potential for the study.
Negative Factors
Drug Approval Challenges
The company outlined what it considers a successful result in the topline Phase IIa readout expected and hosted a fireside chat with KOL and trial investigator Jacqueline French, M.D., who expressed firm conviction in the trial's potential for disease improvement.
Earnings and Development Timeline
Rapport Therapeutics announced their earnings, confirming previously announced development timelines.

Rapport Therapeutics, Inc. (RAPP) vs. SPDR S&P 500 ETF (SPY)

Rapport Therapeutics, Inc. Business Overview & Revenue Model

Company DescriptionRapport Therapeutics, Inc. (RAPP) is a biotechnology company focused on developing precision medicines to treat neurological disorders. By leveraging advanced drug discovery techniques, the company aims to create targeted therapies that address specific neural pathways associated with various conditions. Rapport Therapeutics operates in the biopharmaceutical sector, with a core emphasis on innovative research and development in neuroscience.
How the Company Makes MoneyRapport Therapeutics, Inc. generates revenue primarily through the development and commercialization of its proprietary drug candidates. The company engages in partnerships and collaborations with other pharmaceutical firms to co-develop and license its therapies, which can provide milestone payments and royalties. Additionally, Rapport may secure funding through grants and research agreements to support its drug discovery and development efforts. The company's financial growth is supported by strategic alliances and the successful advancement of its drug pipeline through clinical trials.

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
20
Very Negative
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
75
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022
Income Statement
Total Revenue0.000.000.00
Gross Profit0.00-112.00K-15.00K
EBITDA-77.47M-34.66M-10.35M
Net Income-78.31M-34.79M-10.65M
Balance Sheet
Total Assets314.93M155.42M31.60M
Cash, Cash Equivalents and Short-Term Investments305.28M147.56M31.16M
Total Debt1.48M2.15M0.00
Total Liabilities9.51M14.48M12.10M
Stockholders Equity305.43M140.94M19.50M
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 Flow221.63M145.14M39.69M

Rapport Therapeutics, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.50
Price Trends
50DMA
12.02
Positive
100DMA
10.99
Positive
200DMA
15.19
Positive
Market Momentum
MACD
1.10
Negative
RSI
71.97
Negative
STOCH
72.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAPP, the sentiment is Positive. The current price of 15.5 is above the 20-day moving average (MA) of 13.69, above the 50-day MA of 12.02, and above the 200-day MA of 15.19, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 71.97 is Negative, neither overbought nor oversold. The STOCH value of 72.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RAPP.

Rapport Therapeutics, Inc. Risk Analysis

Rapport Therapeutics, Inc. disclosed 87 risk factors in its most recent earnings report. Rapport Therapeutics, Inc. reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Rapport Therapeutics, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
$463.17M9.0111.96%43.67%
56
Neutral
$6.14B22.14-28.61%4.89%10.73%-32.66%
54
Neutral
$713.26M-49.91%-14.16%25.88%
51
Neutral
$347.95M-57.28%-95.12%21.09%
44
Neutral
$565.71M-33.14%
44
Neutral
$532.02M-115.39%-4.14%
43
Neutral
$1.01B-48.45%7.15%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RAPP
Rapport Therapeutics, Inc.
16.62
-6.43
-27.90%
ALT
Altimmune
4.11
-2.64
-39.11%
CELC
Celcuity
14.05
-4.68
-24.99%
AUTL
Autolus Therapeutics
2.64
-2.03
-43.47%
ORIC
Oric Pharmaceuticals
11.73
-0.17
-1.43%
PRTC
PureTech Health
19.00
-3.51
-15.59%

Rapport Therapeutics, Inc. Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Rapport Therapeutics Appoints New CMO Amid Phase 2a Updates
Neutral
Mar 3, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Mar 12, 2025