Rapport Therapeutics Raises $215.7 Million in Stock Offering to Fund Operations Through 2029
Key Facts
Rapport Therapeutics closed an offering of shares and pre-funded warrants on October 30, estimating net proceeds of about $215.7 million, including the underwriters’ option to purchase additional securities, according to a filing with the U.S. Securities and Exchange Commission. On the same date, the company issued convertible notes with a principal amount of $172.5 million and net proceeds of about $166.8 million. The company said net proceeds from the offerings, together with existing cash and short-term investments, are expected to fund operations through the end of 2029. That extends its previous estimate: in June, it expected its resources to fund operations through the second half of 2029. The financing is intended to support its clinical program, led by ongoing and planned trials of RAP-219.
The company said the primary use of net proceeds would be to fund current and planned clinical trials of RAP-219, along with other research and development, working capital and general corporate purposes. The company had disclosed that it held $436.1 million in cash, cash equivalents and short-term investments as of June 30, 2026. With the new financing, it extended its estimate for how long its operations could be funded from the second half of 2029 to the end of that year. It said the estimate is based on assumptions that may not prove accurate, making the stated funding horizon conditional. The company thus links a substantial part of the financing to continued development of the RAP-219 program and its next testing stages.
The convertible notes carry annual interest of 2.25% and mature on December 1, 2032, according to the filing. The initial conversion price was set at about $26.7750 per share, a 27.50% premium to the offering price. The terms combine a specified interest cost with the option to convert the notes into shares at the stated price. RAPP shares closed at $25.05 on October 30, according to EL7 data. The data provided do not include further details on the stock’s movement during that session.
Rapport announced in October positive topline results from a Phase 2 trial of RAP-219 for the treatment of mania associated with bipolar disorder. The company said the trial met its primary endpoint, with a placebo-adjusted improvement of 3.1 points on the YMRS scale at Week 3. The trial included 253 adults, and the average reduction on the scale was 15.4 points with the drug, compared with 12.3 points with placebo. The results put the program at the center of the new financing plan, with the company identifying ongoing and planned trials of the drug as spending priorities. The results cited were reported by the company in its trial disclosure.
The company expects to hold an end-of-Phase 2 meeting with the U.S. Food and Drug Administration in the first quarter of 2027. It also expects to start two pivotal Phase 3 trials for mania associated with bipolar disorder in the second half of the same year. These are the next announced steps for the RAP-219 program following the Phase 2 results. The funding horizon through the end of 2029 comes in the context of this development plan, with the company cautioning that its estimate depends on assumptions that may not prove accurate. The stock fell 20% in premarket trading on October 28 after the financing was priced, according to Investing.com.