Rapport assigned a new Buy at Truist on lead program

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Pharrel Wiliams

Rapport Therapeutics (NASDAQ:RAPP [https://seekingalpha.com/symbol/RAPP]) traded higher on Tuesday after Truist launched its coverage with a Buy recommendation and a $44 price target, citing the neuro drug developer’s lead candidate RAP-219, for which the company posted mid-stage trial data last week.

Shares of the Boston, Massachusetts-based biopharma surged last week after the company disclosed that a Phase 2a open-label trial for RAP-219 in patients with drug-resistant focal onset seizures succeeded. [https://seekingalpha.com/pr/20223642-rapport-announces-positive-topline-results-from-phase-2a-clinical-trial-of-rapminus-219-in#hasComeFromMpArticle=false]

While more than 30 antiseizure medications are available in the U.S., 30% - 40% of an estimated ~1.8M FOS patients are drug resistant, analyst Joon Lee argued, noting that there is a high unmet medical need for the neurological disorder.

With the global ASM market hovering at ~$10B and set to grow to over $15B by 2033, "we see significant commercial opportunity for RAP-219, if approved,” Lee wrote, arguing that despite their drawbacks, older ASMS are blockbusters, and FOS has a low bar for success.

Despite the shortcomings of an open-label trial, RAP-219, on the face of it, has indicated an impressive efficacy level in terms of magnitude and speed of seizure reduction, Lee added, projecting more than $1B in peak sales for the oral therapy in FOS alone in 2038.

MORE ON RAPPORT THERAPEUTICS

* Rapport: Surging On Phase 2 Study Win - Full Approval Unlikely Before 2028 [https://seekingalpha.com/article/4820515-rapport-surging-on-phase-2-study-win-full-approval-unlikely-before-2028]
* Rapport moved to Buy at Goldman Sachs on antiseizure therapy [https://seekingalpha.com/news/4494436-rapport-stock-moved-buy-goldman-sachs]
* Rapport Therapeutics prices $250M stock at $26 per share [https://seekingalpha.com/news/4493596-rapport-therapeutics-prices-250m-stock-at-26-per-share]
* Seeking Alpha’s Quant Rating on Rapport Therapeutics [https://seekingalpha.com/symbol/RAPP/ratings/quant-ratings]
* Historical earnings data for Rapport Therapeutics [https://seekingalpha.com/symbol/RAPP/earnings]