Leap Therapeutics, Inc. (LPTX) has recently experienced an impressive pre-market surge of 8.21% at $0.66. LPTX stock’s positive momentum continued in the last trading session, gaining 15.71% and closing at $0.61. Leap Therapeutics has grabbed the attention of investors with a notable jump in pre-market trading as the company is set to present new long-term follow-up data at the upcoming American Society of Clinical Oncology (ASCO) Annual Meeting.
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Promising Clinical Data to be Presented at ASCO Annual Meeting
Leap Therapeutics is scheduled to present new long-term follow-up data from the DisTinGuish study at the 2023 ASCO Annual Meeting. The study evaluates Leap’s anti-Dickkopf-1 (DKK1) antibody, DKN-01, in combination with tislelizumab and chemotherapy in first-line patients with advanced gastroesophageal adenocarcinoma (GEA).
This presentation holds significant potential for Leap Therapeutics, as positive clinical data can be a strong catalyst for the company’s future prospects. The Leap Presentation will be delivered by Samuel J. Klempner from Harvard Medical School. This presentation falls under the category of a Poster Discussion Session, with a specific focus on Gastrointestinal Cancer, including Gastroesophageal, Pancreatic, and Hepatobiliary cancers. The presentation is scheduled to take place on Monday, June 5, 2023, at 11:30 a.m. Eastern Time.
Financial Results for the First Quarter of 2023
Leap Therapeutics also recently released its financial results for the first quarter of 2023. Let’s take a closer look at some key figures:
- Net Loss: The net loss for the first quarter of 2023 was $41.9 million, compared to $10.4 million in the same period of 2022. The substantial increase was primarily attributed to the in-process research and development (IPR&D) expense of $29.6 million associated with the acquisition of Flame Biosciences. While the increase in net loss may concern investors, it’s crucial to consider the context and the potential long-term benefits of strategic acquisitions.
- Research and Development Expenses: Research and development expenses for the first quarter of 2023 were $38.9 million, compared to $7.8 million in the same period of 2022. The significant increase in expenses can be attributed to the IPR&D expense related to the Flame acquisition ($29.6 million), increased headcount and compensation expenses ($0.8 million), increased manufacturing costs ($0.8 million), and increased stock-based compensation expenses ($0.1 million). It’s worth noting that decreased clinical trial costs partially offset these increases.
- General and Administrative Expenses: General and administrative expenses for the first quarter of 2023 were $3.8 million, compared to $2.8 million in the same period of 2022. The increase in expenses was primarily due to higher finance and legal fees associated with the Flame acquisition ($0.7 million) and increased headcount and compensation expenses ($0.3 million).
Financial Position
As of March 31, 2023, Leap Therapeutics (LPTX) had cash and cash equivalents totaling $102.0 million, providing the company with a solid financial foundation. Additionally, the company had research and development incentive receivables of $2.3 million, further bolstering its liquidity position.
LPTX’s financial results indicate a substantial increase in expenses due to the Flame acquisition. While this has impacted the net loss for the first quarter, the acquisition could potentially strengthen the company’s pipeline and drive future growth.
Looking ahead, investors should closely monitor Leap Therapeutics’ progress in advancing its pipeline, particularly the outcome of the DisTinGuish study presented at the ASCO Annual Meeting. Positive clinical data could enhance the company’s prospects and generate investor confidence.
