Key Highlights

  • Third quarter net loss widened to USD 40.2 million, or USD 0.84 per share, from USD 26.9 million, or USD 0.71 per share, a year earlier.
  • Research and development expense rose to USD 34.3 million from USD 22.3 million, while selling, general and administrative expense reached USD 9.8 million versus USD 7.7 million.
  • Cash, cash equivalents and short-term investments were USD 395.0 million at September 30, 2026, before October financings with combined net proceeds of about USD 410.7 million (calculated).
  • A Phase 2 trial of RAP-219 in acute bipolar mania met its primary endpoint, with a 3.1-point improvement over placebo and a p-value of 0.045.

Loss Widens as Two Phase 3 Epilepsy Trials Enroll

Rapport Therapeutics (NASDAQ:RAPP), a clinical-stage biotechnology company developing small molecule precision medicines for neurological and psychiatric disorders, filed its Quarterly Report on November 4, 2026 for the period ended September 30, 2026. Net loss was USD 40.2 million against USD 26.9 million, and operating expenses rose to USD 44.1 million from USD 30.0 million. The lead candidate, RAP-219, is in two parallel Phase 3 trials, FOCUS 1 and FOCUS 2, in drug-resistant focal onset seizures, started in the second quarter of 2026. For nine months, the net loss was USD 116.7 million versus USD 77.7 million, and collaboration Revenue was USD 20.0 million from an upfront license payment, with none in the third quarter.

October Financings Add Equity and Convertible Debt

After quarter end, the company closed financings on October 30, 2026. These were 9,761,905 shares at USD 21.00 plus pre-funded warrants, USD 172.5 million of 2.25% convertible senior notes due 2032 and a concurrent private Placement of 1,428,571 shares. Net proceeds were approximately USD 215.7 million, USD 166.8 million and USD 28.2 million respectively. The notes carry an initial conversion price of about USD 26.78 per share, a 27.5% premium to the offering price, and can be settled in cash, shares or both. The company also sold 399,201 shares under its at-the-market program for about USD 10 million. Share issuance dilutes existing holders, and the notes add a fixed interest obligation.

Bipolar Mania Result and the Next Regulatory Steps

In October 2026, Rapport Therapeutics (NASDAQ:RAPP) reported that RAP-219 achieved a statistically significant 3.1-point least squares mean improvement over placebo on the Young Mania Rating Scale at Week 3, with mean reductions of 15.4 and 12.3 points. The drug was generally well tolerated and no serious adverse events were reported. A meeting with the FDA is planned for the first quarter of 2027, and two Phase 3 trials in acute mania are expected to start in the second half of 2027. A Phase 3 trial in generalized seizures is planned for the first half of 2027.

Where Things Stand

The October financings raised about USD 410.7 million in net proceeds (calculated), roughly equal to the cash the company held at September 30, which shows how much it moved to fund late-stage trials. Rapport Therapeutics (NASDAQ:RAPP) is spending faster, with a USD 40.2 million quarterly loss, but now has Capital behind two Phase 3 epilepsy trials. The mania data add a second indication, and the first quarter 2027 FDA meeting is the next marker.