RAPT Therapeutics announced on Monday that it is terminating development of its lead drug candidate zelnecirnon (RPT193) following negative FDA feedback. The news sent company shares plunging as much as 45% in early trading.The oral CCR4 inhibitor was being evaluated in two separate mid-stage studies, one for atopic dermatitis and another targeting asthma. RAPT's stock took a major hit in February after the FDA slapped a clinical hold on the trials due to a serious adverse event of liver failure requiring transplant in a patient enrolled in the atopic dermatitis study.The company went on to close and unblind both trials in May as it continued to investigate the incident. At the time, CEO Brian Wong seemed optimistic, saying, "We believe we will have sufficient data, even if not statistically significant, to inform our path forward and support our discussions with the FDA." Prior to the hold, a total of 229 patients had been enrolled in the Phase IIb atopic dermatitis trial, with roughly 110 having completed the 16-week dosing period.No viable pathHowever, Wong said Monday that "in light of the agency's feedback, we do not see a viable path forward for zelnecirnon, although we continue to believe that CCR4 remains an exciting target with the potential to provide a safe, oral therapeutic option across a number of inflammatory diseases."The company will now focus on advancing its next generation of CCR4 compounds, with plans to identify a new drug candidate in the first half of 2025, while also pursuing in-licensing opportunities for clinical-stage assets to supplement its pipeline.In a recent note, UBS analysts said that while they believed zelnecirnon had "activity and potential" in atopic dermatitis, RAPT would likely face an "uphill battle" given the high safety bar in this space. UBS also highlighted the company's oral tivumecirnon (FLX475) candidate, which is also designed to block CCR4 and is in Phase II testing for cancer. "If RAPT is able to partner/monetise/establish a path forward for tivumecirnon, this could potentially drive shares higher, but we think investors are cautious on this asset," they said.RAPT announced in July that it was reducing its headcount by about 40% in order to conserve cash.