This Mid-Cap Firm Can Potentially Offer Biggest Oral Drug In Atopic Dermatitis, Cantor Thinks So

Cantor assumes coverage of RAPT Therapeutics Inc RAPT with an Overweight rating and a price target of $44 (vs. $58 previously).
The analyst says the company's RPT193 (lead inflammation drug) could be a $3 billion drug in just atopic dermatitis (AD) indication, as it expects AD to outperform psoriasis.
Cantor suggests that ‘193 is the leading oral drug in mid-to late-stage development with use in a broader population (not limited to refractory patients like JAKs) and with a clean safety profile.
In the phase 1 study, RPT193 showed a rapid onset of action with the separation of EASI scores at just four weeks.
RPT193 showed a 36.3% improvement from baseline in the Eczema Area and Severity Index (EASI) score, compared to 17.0% in the placebo group.
In the two weeks following the treatment, the RPT193 group showed continued improvement and further separation from the placebo, with a 53.2% improvement compared to 9.6% in the placebo group.
Yesterday, the company initiated its Phase 2b trial to assess the efficacy and safety of three dose levels of RPT193 as monotherapy in AD patients.
Today, RAPT Therapeutics announced a $50 million PIPE financing from the sale of pre-funded warrants to purchase up to 4 million shares at $12.4999 to Redmile Group.
Price Action: RAPT shares are up 9.20% at $13.65 during the market session on the last check Wednesday.

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