Rapport Therapeutics, Inc., a clinical-stage biopharmaceutical company focused on developing small molecule medicines for central nervous system disorders, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company has not generated any revenue since its inception in February 2022 and continues to incur substantial operating losses.

As of September 30, 2024, Rapport Therapeutics had cash and cash equivalents of $39.3 million, a decrease from $70.2 million at the end of 2023. However, short-term investments surged to $281.3 million from $77.3 million, contributing to total current assets of $325.9 million, up from $150.9 million at the end of the previous fiscal year. The company’s total assets reached $331.1 million, compared to $155.4 million at the end of 2023. Total stockholders’ equity improved to $323.1 million from a deficit of $25.6 million, primarily due to the completion of an initial public offering (IPO) in June 2024, which raised net proceeds of approximately $157.6 million.

Operating expenses for the three months ended September 30, 2024, were $21.6 million, significantly higher than $9.6 million for the same period in 2023. For the nine months ended September 30, 2024, total operating expenses reached $59.5 million, compared to $21.4 million in the prior year. Research and development expenses accounted for a substantial portion of these costs, increasing to $15.5 million in Q3 2024 from $7.6 million in Q3 2023, and totaling $43.7 million for the nine-month period, up from $16.2 million in 2023. General and administrative expenses also rose sharply, reflecting increased workforce costs and professional fees associated with operating as a public company.

The net loss for the three months ended September 30, 2024, was $17.5 million, compared to $8.7 million in the same quarter of 2023. For the nine months, the net loss was $58.3 million, up from $21.3 million in the prior year. The company reported a net loss per share of $(0.50) for Q3 2024, an improvement from $(5.70) in Q3 2023.

Strategically, Rapport Therapeutics is advancing its lead product candidate, RAP-219, which is currently in a Phase 2a trial for drug-resistant focal epilepsy. The company has also initiated plans for additional trials targeting bipolar disorder and diabetic peripheral neuropathic pain. The FDA has placed the Investigational New Drug (IND) application for RAP-219 on clinical hold, requiring further information and protocol amendments.

In terms of corporate governance, the company appointed four new independent directors to its board in November 2024, expanding its size from six to nine members. This move is part of the company's strategy to enhance its leadership as it navigates the complexities of being a public entity and continues its focus on research and development.