J&J-backed startup Rapport files for US IPO

(Reuters) – Biopharmaceutical company Rapport Therapeutics, backed by the venture capital arm of Johnson & Johnson, filed for an initial public offering in the United States on Friday.

Rapport, which develops small molecule medicines for patients suffering from central nervous system disorders, is gearing up for a listing as the IPO market recovers from a slump amid increasing hopes of a soft landing for the economy.

The company said it will be selling shares in the IPO, but did not disclose how many nor the price range.

Rapport’s net loss widened to $34.8 million in 2023 from $10.7 million a year earlier.

The company’s investors include biotech investor ARCH Venture, investment manager Cormorant Asset Management, fund manager Fidelity and healthcare venture firm Third Rock Ventures, among others.

Boston, Massachusetts-based Rapport was formed in February 2022 with founding support from Third Rock Ventures and Johnson & Johnson Innovation-JJDC.

Last year, the company raised $150 million in a Series B funding round led by Cormorant. The round also included investments from Goldman Sachs Asset Management among other firms.

Rapport plans to list on the Nasdaq under the symbol “RAPP”.

Goldman Sachs, Jefferies, TD Cowen and Stifel are the underwriters for the offering.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Alan Barona)