Key Highlights

  • RAPP shares are indicated down 22.21% at $21.42 in premarket, against a prior close of $27.54.
  • The common stock offering is priced at $21.00 per share, about 24% below Tuesday's close.
  • Rapport also priced $150 million of 2.25% convertible senior notes due 2032.
  • A concurrent private placement adds about $30 million at the same $21.00 price.
  • The company says the proceeds extend its cash runway through the end of 2029.

Pricing Below Tuesday's Close Hits Shares

Rapport Therapeutics (NASDAQ:RAPP) shares are indicated down 22.21% at $21.42 in premarket after the company priced underwritten offerings of its common stock and convertible notes. The common stock offering of about $200 million, including about $25 million of pre-funded warrants in lieu of shares, is priced at $21.00 per share, roughly 24% below Tuesday's regular-session close of $27.54, when the stock rose 8.72%.

The raise comes about a week after positive Phase 2 data for RAP-219 in bipolar mania, which showed a 3.1-point YMRS improvement over placebo, though higher agitation and discontinuation rates tempered enthusiasm. Healthcare was steady, with the sector ETF roughly flat.

Rapport, a Boston-based clinical-stage biotechnology company, uses its receptor-associated protein platform to discover and develop precision small-molecule medicines for neurological and psychiatric disorders. Its lead candidate, RAP-219 (relutrigine), is a potential first-in-class TARPγ8-selective AMPA receptor negative allosteric modulator being developed for focal onset seizures, primary generalized tonic-clonic seizures and bipolar mania.

Convertible Notes and a Private Placement Add to the Raise

The $150 million of 2.25% convertible senior notes due 2032 carry an initial conversion price of about $26.775 per share, a premium of roughly 27.5% to the offering price. A concurrent private placement adds about $30 million of stock at $21.00.

Net proceeds are expected to be about $187.5 million from the common stock offering, $145.0 million from the notes and $28.2 million from the private placement, and the offerings are expected to close on or about October 30. Underwriters also hold options for about $30 million of additional stock and $22.5 million of additional notes.

Proceeds Fund RAP-219 Trials Through 2029

Rapport intends to use the proceeds primarily to fund ongoing and planned clinical trials of RAP-219, including planned Phase 3 programs, and believes the net proceeds plus existing cash will fund operations through the end of 2029. Phase 2a follow-up data showed a 90% median reduction in clinical seizures in weeks 9 to 12. The company reported $476.8 million in cash and short-term investments at the end of the first quarter of 2026.

Analysts Had Been Raising Targets Before the Raise

Analysts have been raising targets, with an average near $69. Rapport has a market cap of $1.32 billion and a loss of $3.04 per share, and the offering price sits below the 52-week low of $23.75. In March 2026 the company signed a Greater China license deal for RAP-219 with Tenacia Biotechnology.