SCHEDULE 13G/A: Redmile Group Discloses 9.9% Stake in RAPT Therapeutics

Sentiment:

Beneficial Ownership Disclosure


Redmile Group, LLC and its affiliates reported a 9.9% beneficial ownership stake in RAPT Therapeutics, Inc. following a recent 1-for-8 reverse stock split and warrant adjustments.

Capital raiseThe filing references 1,957,432 shares of Common Stock issuable upon exercise of certain pre-funded warrants.A Beneficial Ownership Limitation (Blocker) of 9.99% restricts the immediate exercise of all warrants, allowing for the issuance of up to 1,134,617 shares under this limitation.The exercise of these warrants would represent a future capital inflow to the company.

Summary

  • Redmile Group, LLC, Jeremy C. Green, and Redmile Biopharma Investments III, L.P. filed an Amendment No. 4 to Schedule 13G for RAPT Therapeutics, Inc.
  • Redmile Group, LLC and Jeremy C. Green each beneficially own 1,765,303 shares of Common Stock, representing 9.9% of the class.
  • Redmile Biopharma Investments III, L.P. beneficially owns 1,147,390 shares of Common Stock, representing 6.5% of the class.
  • The beneficial ownership calculation includes 630,686 shares directly owned by certain private investment vehicles managed by Redmile Group, LLC (the "Redmile Funds") and 1,134,617 shares issuable upon exercise of pre-funded warrants, subject to a 9.99% beneficial ownership limitation.
  • The percentage ownership is based on 16,536,085 shares of Common Stock outstanding as of May 2, 2025, adjusted for a 1-for-8 reverse stock split effective June 16, 2025, plus the maximum exercisable warrant shares under the beneficial ownership blocker.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership and corporate actions (reverse stock split, warrants). It does not inherently convey positive or negative sentiment about the company's operational performance, but rather reflects an investor's position.

Positives

  • NA

Negatives

  • NA

Risks

  • The Beneficial Ownership Limitation (Blocker) on warrants restricts the immediate full exercise of all warrants, potentially impacting the investor's ability to fully realize their position and affecting the company's capital structure flexibility.

Future Outlook

NA

Management Comments

  • Redmile Group, LLC and Mr. Green each disclaim beneficial ownership of these shares, except to the extent of its or his pecuniary interest in such shares, if any.

Industry Context

This filing reflects a significant institutional investor's continued or adjusted stake in a biopharmaceutical company, RAPT Therapeutics, following corporate actions like a reverse stock split. Such disclosures are common in the biotech sector where institutional investment often plays a crucial role in funding and valuation.

Stakeholder Impact

  • Shareholders: The reverse stock split impacts the number of shares outstanding and per-share metrics. The existence of warrants represents potential future dilution upon exercise.
  • Investors: Provides transparency on a significant institutional investor's stake and its composition.

Key Dates

DateDescription
2025-05-02Date as of which 16,536,085 shares of Common Stock were reported outstanding by the Issuer in its Form 10-Q.
2025-05-08Date RAPT Therapeutics filed its Form 10-Q for the quarterly period ended March 31, 2025.
2025-06-16Effective date of the 1-for-8 reverse stock split for RAPT Therapeutics' Common Stock.
2025-06-17Date RAPT Therapeutics reported the reverse stock split in its Form 8-K.
2025-06-30Date of event which requires the filing of this Schedule 13G statement.
2025-08-14Date of signing of the Schedule 13G Amendment No. 4.

Keywords

RAPT Therapeutics, Redmile Group, Schedule 13G, Beneficial Ownership, Common Stock, Warrants, Reverse Stock Split, Biopharma Investments, Institutional Investor

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