Rocket Pharmaceuticals Reports Q2 2025 Financial Results, Reduces Headcount 30%

• Rocket Pharmaceuticals reports Q2 2025 financial results • Focus on RP-A501, RP-A601, and RP-A701 gene therapy development • FDA RMAT designation for RP-A601 in PKP2-ACM • RP-A701 IND accepted, FDA Fast Track designation received • Organizational restructuring to reduce headcount by 30% • Expected cash burn decrease by 25% • Appointed Chris Stevens as Chief Operating Officer • Cash, cash equivalents, and investments: $271.5M • Operational runway into Q2 2027

Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT), a biotechnology company specializing in genetic therapies for rare disorders, has released its financial and operational results for the second quarter of 2025. The company highlighted significant advancements in its gene therapy pipeline, including the FDA RMAT designation for RP-A601 in PKP2-ACM and the IND acceptance and FDA Fast Track designation for RP-A701 in BAG3-DCM. Additionally, the company announced organizational restructuring aimed at reducing headcount by approximately 30% and lowering its 12-month cash burn by nearly 25%.

Key Financial Highlights

- Cash Position: As of June 30, 2025, Rocket Pharmaceuticals had cash, cash equivalents, and investments totaling approximately $271.5 million. The company expects these resources, excluding any potential proceeds from a Priority Review Voucher, to fund operations through the second quarter of 2027.
- R&D Expenses: Research and development expenses were $42.7 million for the quarter, a decrease of $3.7 million compared to the same period last year. This decrease was primarily driven by reductions in manufacturing and development costs, professional fees, and building supplies and consumables.
- General and Administrative Expenses: G&A expenses were $25.0 million for the quarter, down from $27.4 million in the same period last year. The decrease was mainly due to lower commercial preparation expenses and compensation and benefits costs.
- Net Loss: The company reported a net loss of $68.9 million or $0.62 per share (basic and diluted) for the quarter, compared to $69.6 million or $0.74 per share (basic and diluted) in the same period last year.

Pipeline and Operational Updates

Rocket Pharmaceuticals has made notable progress in its gene therapy pipeline:

- RP-A501 (Danon disease): The company is actively engaging with the FDA to resolve the clinical hold and advance the program toward a pivotal trial.
- RP-A601 (PKP2-ACM): Rocket Pharmaceuticals received FDA RMAT designation for RP-A601, which is moving toward a pivotal Phase 2 trial following encouraging initial Phase 1 data presented at the ASGCT.
- RP-A701 (BAG3-DCM): The IND has been accepted, and the FDA has granted Fast Track designation for RP-A701, which is preparing to enter the clinic for the treatment of BAG3-DCM.

Organizational Changes

The company has appointed Chris Stevens as Chief Operating Officer and is undergoing organizational restructuring to reduce headcount by approximately 30%. This restructuring aims to lower the 12-month cash burn by nearly 25% and ensure the company is appropriately resourced for near-term milestones.

Restructuring and Financial Guidance

Rocket Pharmaceuticals incurred approximately $3.5 million in restructuring and restructuring-related charges in the first half of 2025. The company expects its current cash position to provide sufficient operational runway into the second quarter of 2027.

Conclusion

Rocket Pharmaceuticals' Q2 2025 results demonstrate a strategic focus on its gene therapy pipeline and a commitment to financial sustainability through organizational restructuring. The company's advancements in RP-A501, RP-A601, and RP-A701, along with its cash position and operational runway, position it favorably for continued growth and development in the gene therapy space.

References

[1] https://finance.yahoo.com/news/rocket-pharmaceuticals-reports-second-quarter-200000937.html