RAPT Therapeutics, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s cash and cash equivalents decreased to $37.9 million from $47.5 million at the end of 2023, while marketable securities fell to $60.0 million from $111.4 million. Total current assets also declined to $102.6 million from $161.8 million, contributing to a total asset reduction to $108.5 million from $173.3 million. Despite these declines, total current liabilities decreased significantly to $10.4 million from $21.8 million, resulting in total stockholders' equity of $95.5 million, down from $147.0 million.

Operating expenses for the three months ended September 30, 2024, were $19.8 million, a notable decrease from $33.9 million in the same period of 2023. Research and development expenses also saw a significant reduction, dropping to $13.3 million from $27.0 million, primarily due to decreased costs associated with the halted zelnecirnon program and other development activities. The net loss for the quarter was $18.4 million, an improvement from a loss of $31.4 million in the prior year, with net loss per share improving to $(0.47) from $(0.82).

For the nine months ended September 30, 2024, RAPT reported a net loss of $76.6 million, compared to $85.9 million for the same period in 2023. The company’s accumulated deficit increased to $561.3 million. Cash used in operating activities was $72.9 million, slightly higher than $69.3 million in the previous year. The company also reported net cash provided by investing activities of $53.5 million, primarily from the maturity of marketable securities.

Strategically, RAPT has faced challenges, including the cessation of the zelnecirnon program due to FDA clinical holds on trials for atopic dermatitis and asthma. In response to financial pressures, the company executed a workforce reduction on July 16, 2024, impacting 47 employees, or approximately 40% of its workforce, incurring $0.9 million in restructuring charges. The company plans to raise additional capital through equity issuance, borrowings, or strategic alliances to support ongoing research and development activities.

As of September 30, 2024, RAPT had $97.9 million in cash and marketable securities, with working capital of $92.2 million, which the company believes will meet its obligations for at least the next 12 months. However, substantial future expenditures are anticipated for pipeline expansion and drug candidate development, necessitating further capital to sustain operations.