RAPT Therapeutics, Inc. (NASDAQ: RAPT) saw a surge in its stock price following the announcement of a strategic partnership with Shanghai Jemincare Pharmaceutical. The collaboration entails an exclusive license agreement for the development and commercialization of RPT904, a groundbreaking anti-IgE monoclonal antibody with global reach, excluding specific regions such as mainland China, Hong Kong, Macau, and Taiwan.
RPT904 aims to offer a viable alternative to omalizumab (Xolair), targeting allergic conditions like asthma and chronic spontaneous urticaria (CSU). Under the terms of the agreement, Jemincare stands to receive an initial payment of $35 million, along with potential milestone payments totaling up to $672.5 million linked to regulatory and commercial achievements, in addition to royalties on sales outside its designated territory.
RAPT is gearing up to concentrate on advancing RPT904 for the treatment of food allergies, while Jemincare is actively engaged in Phase 2 clinical trials in China focusing on asthma and CSU. Noteworthy progress has been made with Jemincare having successfully completed a Phase 1 study of JYB1904 involving 56 healthy volunteers in China to assess the drug’s safety, pharmacokinetics (PK), and pharmacodynamics (PD).
Jemincare’s current efforts involve conducting two Phase 2 trials in China. The asthma trial centers on comparing PK and PD with omalizumab, with top-line data anticipated by late 2025. Meanwhile, the CSU trial is directed towards evaluating safety and efficacy, with results expected in early 2026.
Commenting on the partnership, Brian Wong, M.D., Ph.D., President and CEO of RAPT, expressed enthusiasm about the collaboration with Jemincare and the potential of RPT904 as an innovative treatment option for individuals with food allergies. He highlighted the rapid uptake of omalizumab in food allergy treatment as evidence of the substantial unmet demand in this burgeoning market.
Wong emphasized that RPT904, which targets the same validated epitope as omalizumab but boasts an extended half-life, possesses a best-in-class profile. The company is set to kick off a Phase 2b clinical trial of RPT904 for food allergies in the latter half of 2025.
In a separate development, RAPT Therapeutics unveiled a securities purchase agreement with accredited investors for a private placement valued at approximately $150 million. The agreement covers 100 million common shares priced at $0.85 per share and pre-funded warrants for up to 76.45 million shares priced at $0.8499 per share.
The pre-funded warrants, exercisable at $0.0001 per share, are immediately actionable and will remain valid until fully exercised. The anticipated closure date for the transaction is by December 27, 2024, subject to customary conditions.
