RAPT Therapeutics: LifeSci Capital initiates Outperform with $31 PT.

RAPT Therapeutics: LifeSci Capital initiates Outperform with $31 PT.

LifeSci Capital has initiated coverage on RAPT Therapeutics with an "Outperform" rating and a price target of $31, reflecting a 15% increase from the current market price. The analyst firm highlighted RAPT Therapeutics' promising pipeline of peanut allergy treatments, particularly the Viaskin Peanut Patch, as a key driver for this positive outlook.

RAPT Therapeutics is developing Viaskin Peanut Patch, an epicutaneous immunotherapy that delivers trace amounts of peanut protein via a skin patch to promote desensitization. The therapy has received Fast Track and Breakthrough Therapy Designations from the US FDA and is currently in a Phase III clinical trial involving peanut-allergic children aged 4 to 7. DBV Technologies, the developer of Viaskin, expects to share top-line data from the VITESSE trial in Q4 2025, potentially advancing the BLA submission to the first half of 2026 [1].

LifeSci Capital's analysis noted that the peanut allergy market is expected to grow at a CAGR of 16% during the study period from 2020 to 2034, driven by increased usage of approved therapies, expected entry of novel emerging therapies, and a slight increase in diagnosis over time. The market size for peanut allergy in the 7MM (United States, EU4, United Kingdom, and Japan) was USD 400 million in 2024 and is projected to witness significant growth [1].

The analyst firm also highlighted the potential for RAPT Therapeutics' pipeline to capture a significant share of this growing market. Viaskin Peanut Patch, with its ease of use and strong safety profile, is expected to be a popular choice among patients and healthcare professionals. Additionally, the company's strategic partnerships and collaborations in the allergy treatment space are seen as a positive factor for RAPT Therapeutics' long-term success.

However, LifeSci Capital also noted potential challenges that could impact RAPT Therapeutics' growth. These include the high annual cost of XOLAIR, which may limit affordability and access, and the slow uptake of PALFORZIA due to modest clinical benefits over standard peanut avoidance. Furthermore, the inconsistent or unclear food labeling practices increase the risk of accidental exposure, complicating condition management and posing ongoing risks for individuals with peanut allergies [1].

In conclusion, LifeSci Capital's positive rating on RAPT Therapeutics reflects the company's strong pipeline of peanut allergy treatments and the growing market demand for innovative therapies. However, investors should also be aware of the potential challenges and risks associated with the company's growth.

References:
[1] https://www.prnewswire.com/news-releases/peanut-allergy-market-set-to-grow-at-a-16-cagr-during-the-study-period-20202034-owing-to-current-usage-of-epinephrine-anticipated-usage-of-xolair-in-adults-palforzia-in-toddlers-and-expected-entry-of-viaskin-peanut-patches--302506490.html