JPMorgan cuts Rapt Therapeutics to Underweight after zelnecirnon discontinued

As previously reported, JPMorgan analyst Anupam Rama downgraded Rapt Therapeutics (RAPT) to Underweight from Neutral after the company announced the discontinuation of the zelnecirnon program in atopic dermatitis and asthma. Based on the firm’s discussion with the company, both phase 2 studies – which had been placed on clinical hold in February – will be presented at future medical congresses. The firm does not see the value creating catalyst(s) near-term to drive fundamental value or a shift in negative sentiment on Rapt shares, so it sees the potential for relative underperformance compared to the broader biotech markets, the analyst tells investors.