Rapport raises $200M in stock sale as it widens RAP-219 to a second disease
What's the deal? Rapport Therapeutics (Nasdaq: RAPP), a clinical-stage biotech developing precision medicines for neurological and psychiatric disorders, raised $200 million in a common stock offering. The sale was part of a wider financing that also included $150 million in 2.25% convertible senior notes due 2032 and a $30 million concurrent private placement, pricing at roughly $380 million gross.
The terms: Rapport priced the stock at $21 per share. Morgan Stanley, Leerink PartnersDealroom has a profile for this one. Try Dealroom →, and Evercore ISI acted as joint book-running managers for the underwritten offerings, with BTIGDealroom has a profile for this one. Try Dealroom → and Citizens Capital Markets joining on the stock sale.
Why now? The raise follows positive Phase 2 results for RAP-219 in bipolar mania. The drug, an AMPA receptor negative allosteric modulator, is already in Phase 3 trials for focal-onset seizures.
What's the endgame? Rapport plans to use the proceeds to fund trials advancing RAP-219, plus other research, working capital, and general corporate purposes. It may also use some funds to in-license or acquire complementary assets, though it has no agreements in place. The company says the cash extends its runway through 2029.
What could go wrong? The raise is large relative to Rapport's roughly $395 million in cash and short-term investments at September-end. The stock issuance dilutes existing holders, while the convertible notes add a future conversion claim; shares fell sharply after pricing.
The signal: The financing ranks in the top 10% of post-IPO equity rounds for US health companies by size. It shows how clinical-stage biotechs are using strong trial data to raise big and push a single lead drug across multiple indications at once.
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