H.C. Wainwright Upgrades Rapt Therapeutics (RAPT) to Buy

H.C. Wainwright analyst Raghuram Selvaraju upgraded Rapt Therapeutics (NASDAQ: RAPT) from Neutral to Buy with a price target of $10.00.

The analyst commented: "In a press release earlier this week, RAPT and Shanghai Jemincare Pharmaceutical Co., Ltd., a subsidiary of Jiangxi Jemincare Group, a leading pharmaceutical company in China, announced that they have entered into an exclusive license agreement for JYB1904 (RAPT designation: RPT904), a clinical-stage, half-life extended anti-immunoglobulin E (IgE) monoclonal antibody. Under the license agreement terms, RAPT is granted worldwide rights excluding mainland China, Hong Kong, Macau and Taiwan to develop and commercialize RPT904. Jemincare received a $35M upfront license fee, up to $672.5M in further payments upon achievement of various regulatory and commercial milestones, and single-digit to low double-digit royalties on future net sales of RPT904 outside Greater China. RPT904 is being developed to offer patients a potentially improved therapeutic option compared to omalizumab—marketed under the trade name Xolair by Roche (ROG.SW; not rated)—an anti-IgE monoclonal antibody approved for several allergic disorders, including asthma, chronic spontaneous urticaria (CSU), chronic rhinosinusitis with nasal polyps and, most recently, food allergy. RAPT plans to pursue development of RPT904 initially in food allergy. Separately, Jemincare is conducting Phase 2 clinical trials of JYB1904 in China in asthma and CSU. In the wake of this announcement, we are upgrading our rating on RAPT shares to Buy from Neutral, while instituting a 12-month price target of $10. Our price objective is driven by the prospects for RPT904 in food allergy and CSU in the United States alone."

For an analyst ratings summary and ratings history on Rapt Therapeutics click here. For more ratings news on Rapt Therapeutics click here.

Shares of Rapt Therapeutics closed at $1.73 yesterday.

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