The sell-off marks a sharp reversal for the company, which had already seen its stock dip roughly 9% since the beginning of the year. Investors are reacting to the dilution inherent in the new offerings, even as the firm pushes ahead with its pipeline of neurological and psychiatric drug candidates.
In section Market Quotes
Rapport Therapeutics Shares Slide on $350 Million Financing Plan
Rapport Therapeutics shares plummeted 19% in after-hours trading, hitting $22.19, following the company’s announcement of a $350 million capital raise. The biotech firm plans to secure $200 million through a stock offering and an additional $150 million via convertible notes, alongside a concurrent private placement.
The capital infusion follows a period of clinical momentum for the company. Just last week, Rapport reported positive results from a Phase 2 study of RAP-219, its lead candidate designed to treat adults with acute bipolar mania. The drug utilizes a specialized approach to neuroanatomical targeting, focusing on receptor-associated proteins expressed only in specific brain regions. The convertible notes associated with this financing package are slated to mature on December 1, 2032, unless they are converted, redeemed, or repurchased before that date.
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