Rapt Therapeutics Faces Continued Challenges with Second Round of Layoffs

Rapt Therapeutics, a Bay Area-based immunology biotech company, has conducted its second round of layoffs in less than a year, marking another setback in a tumultuous period following the clinical hold and eventual discontinuation of its former lead asset.

Ongoing Fallout from FDA Hold

The company's troubles began in February 2024 when the U.S. Food and Drug Administration (FDA) placed a clinical hold on zelnecirnon, Rapt's then-lead asset. The hold affected phase 2 trials for atopic dermatitis and asthma after a patient in the atopic dermatitis trial experienced liver failure. This nine-month clinical hold culminated in Rapt shelving the program entirely in November 2024.

The initial impact of this setback was evident when Rapt reduced its workforce by approximately 40%, laying off 47 employees in July 2024. Now, less than a year later, the company has implemented another round of layoffs, though the exact number of affected employees remains undisclosed.

Pipeline Pivot and Future Directions

In response to these challenges, Rapt Therapeutics has made significant changes to its pipeline strategy:

1. The company acquired the ex-China rights to an anti-immunoglobulin E antibody from Shanghai Jemincare Pharmaceutical for $35 million upfront. This asset, now called RPT904, is being studied in phase 2 trials for asthma and chronic spontaneous urticaria by Jemincare, while Rapt plans to focus on its potential in food allergy.

2. Rapt intends to launch a phase 2 food allergy trial for RPT904 in the second half of 2025.

3. The company continues to develop two CCR4 antagonists: one in the preclinical stage for an undisclosed inflammation indication, and tivumecirnon, a Hanmi-partnered small molecule that recently completed a phase 2 trial for gastric cancer in combination with Merck & Co.'s Keytruda (pembrolizumab).

As Rapt Therapeutics navigates these challenges, the biotech industry watches closely to see how the company will leverage its remaining assets and partnerships to regain stability and advance its pipeline in the competitive immunology space.