Rapport Therapeutics, Inc. (RAPP) AI Stock Analysis

• Market Cap: $371.91M
• Dividend Yield: N/A
• Average Volume (3M): 145.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 69
• Sector: General
• Sector Strength: N/A
• Industry: Biotechnology
• EPS (TTM): -0.68
• Shares Outstanding: 36,497,555
• 10 Day Avg. Volume: 120,487
• 30 Day Avg. Volume: 145,393
• PEG Ratio: 4.70
• Price to Book (P/B): 6.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.46
• 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: $35.00
• Price Target Upside: 243.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

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 Progress

The company continues to build evidence for lead program RAP-219, with target engagement confirmed in humans via a PET study and additional safety data.

Market Potential

RAP technology is expected to be clinically efficacious and commercially competitive in multiple CNS indications.

Therapeutic Differentiation

RAP-219's precise targeting of areas associated with seizure activity eliminates off-target toxicity observed in current anti-epileptic drugs.

Negative Factors

Clinical Hold

The company is advancing RAP-219 through the clinic as expected, which is encouraging except for the pain indication on clinical hold.

Development Uncertainty

Unmet need remains for refractory focal epilepsy patients, with current therapies having limited efficacy, safety/tolerability issues, and complex administration.

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 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

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. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RAPP, the sentiment is Neutral. The current price of 10.19 is below the 20-day moving average (MA) of 10.63, above the 50-day MA of 10.10, and below the 200-day MA of 16.95, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 47.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RAPP.

Rapport Therapeutics, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRTC	59 Neutral	$412.24M	8.27	11.96%	―	43.67%	―
Sector *	56 Neutral	$4.77B	20.84	-17.81%	5.09%	14.21%	-27.26%
ALT	53 Neutral	$446.09M	―	-57.28%	―	-95.12%	21.09%
AUTL	45 Neutral	$393.89M	―	-49.97%	―	-14.16%	25.80%
RAPP	44 Neutral	$371.91M	―	-33.14%	―	―	―
CELC	44 Neutral	$404.79M	―	-115.39%	―	―	-4.14%
ORIC	43 Neutral	$365.39M	―	-48.45%	―	―	7.15%

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.