Rapt Therapeutics Announces Second Round of Layoffs Amid Pipeline Restructuring

Rapt Therapeutics, a Bay Area-based immunology biotech company, has implemented its second round of layoffs in less than a year, marking a continued period of upheaval following the clinical hold and subsequent discontinuation of its former lead asset. The recent staff reduction, confirmed by a company spokesperson to Fierce Biotech, comes as part of ongoing efforts to realign resources and refocus the company's pipeline.

Pipeline Setbacks and Restructuring

The troubles for Rapt Therapeutics began in February 2024 when the FDA placed a clinical hold on zelnecirnon, the company'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 ultimately led to the complete shelving of the zelnecirnon program in November.

In response to these setbacks, Rapt has pivoted its pipeline strategy. A key move in this restructuring was the acquisition of ex-China rights to an anti-immunoglobulin E antibody from Shanghai Jemincare Pharmaceutical for $35 million upfront. This asset, now designated as RPT904, is being positioned for a phase 2 food allergy trial scheduled to launch in the second half of 2025.

Ongoing Development Programs

Despite the challenges, Rapt Therapeutics maintains an active development pipeline:

1. RPT904: The newly acquired anti-immunoglobulin E antibody, currently in phase 2 trials for asthma and chronic spontaneous urticaria by Jemincare, with Rapt focusing on food allergy indications.

2. CCR4 Antagonists: Two compounds remain in development, including a preclinical-stage molecule for an undisclosed inflammation indication and tivumecirnon, partnered with Hanmi Pharmaceutical.

3. Tivumecirnon: This Hanmi-partnered small molecule recently completed a phase 2 trial for gastric cancer in combination with Merck & Co.'s Keytruda (pembrolizumab).

Workforce Reductions and Financial Implications

The latest round of layoffs follows a previous workforce reduction of approximately 40% in July 2024, which affected 47 employees. While the exact number of employees impacted in this recent cut has not been disclosed, the move signals ongoing financial pressures and the need for strategic resource allocation.

As Rapt Therapeutics navigates through this challenging period, the company's focus on advancing its restructured pipeline and maintaining financial stability remains paramount. The coming months will be critical in determining the success of the company's new strategic direction and its ability to deliver on the promise of its remaining development programs.