J&J-backed startup Rapport files for US IPO

[May 18, 2024]  (Reuters) -Biopharmaceutical company Rapport Therapeutics, backed by the venture capital arm of Johnson & Johnson, filed for an initial public offering in the United States on Friday.

Rapport, which develops small molecule medicines for patients suffering from central nervous system disorders, is gearing up for a listing as the IPO market recovers from a slump amid increasing hopes of a soft landing for the economy.

The company said it will be selling shares in the IPO, but did not disclose how many nor the price range.

Rapport's net loss widened to $34.8 million in 2023 from $10.7 million a year earlier.

Initially named Precision Neuroscience NewCo, the company plans to use a portion of the IPO proceeds to advance the clinical development of its lead product candidate, RAP-219, for the treatment of focal epilepsy.

Epilepsy is one of the most common neurological diseases, affecting about 50 million people worldwide, according to the World Health Organization.

About 3 million adults in the United States suffer from epilepsy, with 60% of them or 1.8 million people having focal epilepsy.

The company's investors include biotech investor ARCH Venture, investment manager Cormorant Asset Management, fund manager Fidelity and healthcare venture firm Third Rock Ventures, among others.

A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly/File Photo/File Photo

Boston, Massachusetts-based Rapport was formed in February 2022 with founding support from Third Rock Ventures and Johnson & Johnson Innovation-JJDC.

Last year, the company raised $150 million in a Series B funding round led by Cormorant. The round also included investments from Goldman Sachs Asset Management among other firms.

Since its inception, Rapport has raised about $250 million in equity capital from life sciences investors.

Rapport plans to list on the Nasdaq under the symbol "RAPP".

Goldman Sachs, Jefferies, TD Cowen and Stifel are the underwriters for the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Alan Barona)

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