H.C. Wainwright Downgrades Rapt Therapeutics (RAPT) to Neutral

H.C. Wainwright analyst Raghuram Selvaraju downgraded Rapt Therapeutics (NASDAQ: RAPT) from Buy to Neutral.

The analyst comments "All zelnecirnon clinical trials paused following patient death—downgrading to Neutral without a price target. Yesterday, RAPT Therapeutics announced that the FDA had notified the company on Friday that all zelnecirnon (formerly RPT193) trials will be placed on clinical hold due to a case of liver failure in one patient in the then ongoing Phase 2b atopic dermatitis (AD) trial. While the liver failure was only deemed potentially related to the therapy, we also highlight the fact that liver toxicity was only observed in this patient out of approximately 350 individuals treated with the drug to date, shedding some important context on the prevalence of liver-related issues. We await further clarification from the FDA on the necessary steps to lift the clinical hold. Beyond this, we also expect that RAPT would need to define the extent to which the Phase 2b trial has been compromised and, in the event that the trial is deemed irretrievable, may have to resume clinical development with a delay of possibly more than a year. Therefore, we are downgrading RAPT to Neutral from the prior Buy and removing our price target."

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Shares of Rapt Therapeutics closed at $6.87 yesterday.

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