FDA puts on hold two drug trials of Rapt Therapeutics in ‘major setback’

Feb 20 (Reuters) – Rapt Therapeutics (RAPT.O) said on Tuesday the U.S. FDA had placed on hold two mid-stage trials of the company’s drug to treat eczema and asthma, after liver failure was observed in one of the patients.

Shares of the San Francisco-based company plummeted 66% to $8.92 in premarket trading.

Stifel analyst Alex Thompson said the clinical hold “represents a major setback” for the company and could result in “a meaningful delay in trial timelines”.