Why did RAPT's EPS remain stagnant throughout 2024?

The reasons for RAPT's EPS remaining stagnant throughout 2024 can be analyzed as follows:

1. **Revenue and Net Income**: RAPT Therapeutics reported a net loss of $53.25 million for the quarter ending December 31, 2024. This net loss, coupled with no reported revenue for the same period, indicates a company in financial distress. When a company's revenue does not cover its expenses, including those related to research and development, it can lead to negative net income and, consequently, a stagnant EPS.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q1||-3.0521E7|-0.79|185|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q2||-2.7663E7|-0.71|185|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q3||-1.8432E7|-0.47|185|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q4||-5.3249E7||185|

2. **R&D Expenses**: The company's research and development (R&D) expenses were $46.46 million for the quarter ending December 31, 2024. Such high R&D costs are common for biopharmaceutical companies, especially those in the clinical stages, as they invest heavily in developing new therapies. These expenses can be a significant burden, potentially leading to negative net income and stagnant EPS if not matched by revenue growth.

|code|Ticker|Name|Date|R&D Expenses|R&D Expenses YoY|market_code|
|---|---|---|---|---|---|---|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q1|2.4781E7|-3.1008055055916164|185|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q2|2.264E7|4.611403751963774|185|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q3|1.334E7|-50.63281770409296|185|
|RAPT|RAPT.O|RAPT Therapeutics|2024 Q4|4.6456E7|73.57644597220147|185|

3. **Clinical Hold on Zelnecirnon**: The company faced a clinical hold on its key asset, zelnecirnon, due to safety signals and incomplete data. This hold likely led to reduced R&D expenses, as evidenced by the decrease in R&D costs compared to the previous year. However, it also suggests that the company may not have been able to advance this candidate to the next stages of development, potentially impacting future revenue projections and, consequently, EPS.
4. **Stock Price and Market Sentiment**: RAPT's stock experienced significant volatility and hit a 52-week low, reflecting broader investor concerns and a cautious sentiment within the biotech sector. Such stock price declines can indicate market doubts about the company's future prospects, which may have affected the company's financial performance and EPS stability.
5. **Workforce Reduction and Strategic Adjustments**: RAPT implemented a workforce reduction, affecting 47 employees, or about 40% of the headcount. This move was likely aimed at conserving cash resources but could also have had an impact on the company's ability to maintain its R&D momentum and, subsequently, its EPS.

In summary, RAPT's stagnant EPS throughout 2024 can be attributed to a combination of factors including negative net income due to high R&D costs and lack of revenue, clinical holds on key assets, stock price declines affecting market sentiment, and strategic adjustments like workforce reductions.