RAPT Therapeutics Inc.'s (RAPT:NASDAQ) "clinical plans remain on track" and the biopharma has the cash to execute on them, reported ROTH Capital Partners analyst Zegbeh Jallah in a May 12th research note. This California-based firm is developing small molecule therapies for patients with significant unmet needs in oncology and inflammatory diseases.
RAPT, in reporting its Q1/22 financial and operational results, indicated two Phase 2 trials involving its lead drug candidate in inflammatory diseases, oral CCR4 agonist RPT193, are expected to commence on time, noted Jallah. The study in atopic dermatitis is slated for initiation in H1/22, the trial in asthma, in H2/22.
"Success [in either indication] could lead to multi-blockbuster sales," Jallah commented.
ROTH's target price on RAPT, of $72 per share, suggests potential multi-bagger returns, given the stock is now trading at around $12.35 per share.
"We remind investors of the potential attractiveness of RPT193 to a large pharma even while viewing FLX475 as a call option until additional data updates are provided," added Jallah.
FLX475 is a CCR4 antagonist that RAPT is pursuing in various solid tumors, including head and neck small cell carcinoma, nasopharyngeal cancer, and Epstein-Barr virus-positive lymphoma. Jallah noted that biopharma continues to make progress with these programs "providing additional upside."
Jallah pointed out that RAPT is well funded to see it at least through 2022, having $173 million in cash, cash equivalents, and marketable securities at the end of Q1/22.
ROTH rates the biopharma a Buy.
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Disclosures for Roth Capital Partners, RAPT Therapeutics, May 12, 2022
Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from RAPT Therapeutics. ROTH makes a market in shares of RAPT Therapeutics and as such, buys and sells from customers on a principal basis. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for RAPT Therapeutics.
Not Covered [NC]: ROTH does not publish research or have an opinion about this security. ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information, and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry, or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH.
