Is Rapport Therapeutics Stock a Buy After Investment Firm Cormorant Raised Its Stake Over $60 Million?
Key Points
Cormorant Asset Management added 251,600 shares in Rapport Therapeutics; the reported position value increased by approximately $61.38 million over the prior quarter.
The change represents 0.31% of Cormorant’s reportable 13F assets under management.
The post-trade stake totaled 3,192,521 shares worth $94.82 million.
Rapport Therapeutics now comprises 6.54% of AUM, making it the fund's 4th-largest holding.
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What happened
Cormorant Asset Management, LP reported a buy of 251,600 additional shares of Rapport Therapeutics (NASDAQ:RAPP), as disclosed in its November 14, 2025, SEC filing. The newly reported position stands at 3,192,521 shares, valued at $94.82 million at quarter-end. The trade increased the stake by approximately $61.38 million, accounting for 0.31% of Cormorant’s $1.45 billion in reportable U.S. equity assets.
What else to know
Cormorant Asset Management, LP increased its holding in Rapport Therapeutics; post-trade, the position represents 6.54% of 13F AUM.
Top holdings after the filing:
- NASDAQ:BBOT: $207,034,119 (14.3% of AUM)
- NASDAQ:ABVX: $165,555,000 (11.4% of AUM)
- NASDAQ:EYPT: $118,548,000 (8.2% of AUM)
- NASDAQ:RAPP: $94,817,874 (6.5% of AUM)
- NASDAQ:BBIO: $72,716,000 (5.0% of AUM)
As of November 14, 2025, shares of Rapport Therapeutics were priced at $24.37, up 10.87% over the past year, underperforming the S&P 500 by 1.0 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close November 14, 2025) | $24.37 |
| Market capitalization | $1.49 billion |
| Net income (TTM) | ($97.70 million) |
| One-year price change (as of market close November 14, 2025) | 10.87% |
Company snapshot
- Rapport Therapeutics develops small molecule therapeutics targeting central nervous system (CNS) disorders, with lead candidates including RAP-219 for focal epilepsy and other CNS indications, and additional programs addressing chronic pain and hearing disorders.
- It operates as a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary drug candidates with the aim of advancing them through clinical trials and potential regulatory approval.
- The company targets patients suffering from CNS disorders, including epilepsy, neuropathic pain, bipolar disorder, and hearing loss, with a primary focus on unmet medical needs in neurology and psychiatry.
Rapport Therapeutics is a clinical-stage biotechnology company advancing a pipeline of small molecule medicines for central nervous system disorders. The company's strategy centers on developing differentiated therapies with novel mechanisms of action, addressing significant unmet needs in neurology and psychiatry. With a focused portfolio and proprietary research, Rapport aims to establish a competitive edge in the CNS therapeutics market.
Foolish take
Cormorant Asset Management's purchase of additional Rapport Therapeutics stock shows the investment firm is bullish on the biotech company. Cormorant's timing was excellent, since shares have climbed since the firm's buy in the third quarter.
In September, Rapport Therapeutics reported positive results in its phase 2a clinical trial for its RAP-219 drug. This helped propel shares to a 52-week high of $42.27 on Sept. 8. The company followed up these results in December with new data demonstrating RAP-219's effectiveness.
Rapport Therapeutics reported a net loss of $26.9 million in Q3, but it held cash, cash equivalents, and short-term investments of $513 million. The company expects these funds to carry it into the second half of 2029.
Since Rapport Therapeutics does not generate revenue, its future is dependent on RAP-219's next set of clinical trials and getting government approval when the drug is ready for use in treatments. As a result, any investment in the stock is risky and only for those with a high risk tolerance.
Glossary
Asset management: The professional management of investments on behalf of clients, such as individuals or institutions.
13F assets under management (AUM): The total market value of U.S. equity securities managed by an institutional investment manager, as reported in SEC Form 13F filings.
Clinical-stage: Refers to a company whose drug candidates are being tested in human clinical trials but are not yet approved for sale.
Biopharmaceutical company: A firm that develops drugs using biological and chemical processes, often focusing on innovative therapies.
Small molecule therapeutics: Medicines made from low molecular weight compounds, typically administered orally, designed to target specific biological processes.
Central nervous system (CNS) disorders: Medical conditions affecting the brain and spinal cord, such as epilepsy, pain, or psychiatric illnesses.
Lead candidates: The most advanced drug compounds in a company's development pipeline, prioritized for clinical testing.
Pipeline: The portfolio of drug candidates a biopharmaceutical company is researching or developing.
Mechanisms of action: The specific ways a drug produces its effects in the body.
Unmet medical needs: Health conditions for which current treatments are inadequate or nonexistent.
Quarter-end: The last day of a company's fiscal quarter, used as a reference point for financial reporting.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends BridgeBio Pharma. The Motley Fool has a disclosure policy.
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