This Day That Year: RAPT Therapeutics (RAPT)

(RTTNews) - Shares of RAPT Therapeutics Inc. (RAPT) are down nearly 42 percent from their 52-week high of $51.21, recorded in January of this year, and trade around $29.

The company, located in San Francisco Bay area, made its debut on the Nasdaq Global Market on October 31, 2019, by setting a public offering at $12.00 per share.

RAPT's lead compound is FLX475, an oral CCR4 antagonist, being developed for the treatment of a broad range of "charged" tumors. There are certain tumors in which there is abundance of Regulatory T (Treg) cells, which inhibit anti-tumor immunity, leading to poor prognosis in cancer patients. These are known as charged tumors and they include tumor types such as non-small cell lung cancer, triple negative breast cancer, head and neck squamous cell carcinoma, esophageal cancer, gastric cancer and cervical cancer.

FLX475 is under phase I/II development. The phase I healthy volunteer study and phase I portion of the trial in cancer patients have been successfully completed, with FLX475 showing no safety issues and demonstrating encouraging evidence of clinical activity.

The phase II portion of the phase I/II study of FLX475 as a monotherapy, and in combination with Keytruda in patients with "charged" tumors is underway.

The initial results from the FLX475 trial are expected later this year.

RAPT licensed FLX475 to Seoul, South Korea-based Hanmi Pharmaceutical Co. Ltd last December in a deal valued at $118 million. Hanmi has the rights to develop and commercialize FLX475 for the treatment of cancer in South Korea and China, including Taiwan and Hong Kong.

Up next in the pipeline is RPT193, an oral CCR4 antagonist for allergic diseases like atopic dermatitis, asthma, and others. A phase Ib study of RPT193 in patients with atopic dermatitis is ongoing, with results expected by year end.

Besides the clinical programs, RAPT Therapeutics has two compounds in discovery stage that inhibit HPK1 and GCN2.

Hematopoietic progenitor kinase 1 (HPK1) is a protein kinase that reduces the T cell response to tumor cells. Inhibition of HPK1 helps to enhance T cell function and antitumor responses.

GCN2, or general control nonderepressible 2, is a stress response kinase that regulates the immune system and survival of tumor cells in the tumor micro-environment.

Cash & Financial Numbers

In the second quarter ended June 30, 2020, net loss was $12.39 million or $0.51 per share on revenue of $1.27 million, pursuant to the Hanmi Agreement. This compared to a net loss of $10.63 million or $14.78 per share and nil revenue in the second quarter of 2019.

As of June 30, 2020, the company's cash and cash equivalents and marketable securities of $133.0 million.

RAPT has thus far hit a low of $10.52 and a high of $51.21. The stock closed Thursday's trading at $29.89, down 4.17%.