Leap Therapeutics Inc. (NASDAQ:LPTX) is trading at $0.69 in pre-market, down 9.15% on Tuesday.Check out the current price of LPTX stock here.Winklevoss Capital Leads $58.9 Million Private PlacementThe Cambridge, Massachusetts-based biotechnology company announced $58.88 million in cash commitments for a private investment in public equity offering led by Winklevoss Capital. According to an Oct. 6 press release, the deal involves 95,849,353 common shares or pre-funded warrants, along with warrants to purchas ...

, /PRNewswire/ -- Leap Therapeutics (Nasdaq:LPTX), a biotechnology company focused on developing targeted and immuno-oncology therapeutics, today announced $58,888,888 in cash commitments for a private investment in public equity ("PIPE") offering led by Winklevoss Capital to initiate a digital asset treasury strategy. Leap has entered into a securities purchase agreement for the purchase and sale of (i) 95,849,353 shares of common stock (the "Purchased Shares") or pre-funded warrants in lieu thereof (the ...

Core Insights - Leap Therapeutics, Inc. reported a strategic realignment focusing on corporate development opportunities for its products sirexatamab and FL-501, alongside a reduction in internal expenses and a review of strategic alternatives to maximize shareholder value [2][11]. Financial Performance - The net loss for the second quarter of 2025 was $16.6 million, a decrease from $20.4 million in the same quarter of 2024, primarily due to reduced research and development and general administrative expenses [5][6]. - Research and development expenses were $10.5 million for Q2 2025, down from $17.9 million in Q2 2024, reflecting a decrease of $7.4 million attributed to lower clinical trial costs and other related expenses [6]. - General and administrative expenses decreased to $1.8 million in Q2 2025 from $3.4 million in Q2 2024, mainly due to reductions in payroll and incentive-based compensation [7]. - The company incurred $4.5 million in restructuring charges related to workforce reduction during the second quarter [8]. Clinical Development - Updated clinical data from the DeFianCe study indicated that sirexatamab showed a statistically significant benefit in overall response rate and progression-free survival in colorectal cancer patients with specific characteristics [3]. Strategic Initiatives - The Board of Directors initiated a process to explore strategic alternatives, including potential sales or partnerships for sirexatamab and FL-501, and engaged Raymond James & Associates, Inc. as an exclusive financial advisor [11]. - The company implemented a workforce reduction of approximately 75% to further reduce spending and preserve capital [11]. Cash Position - As of June 30, 2025, cash and cash equivalents totaled $18.1 million, a decrease from $47.2 million at the end of 2024 [15].

Core Insights - Leap Therapeutics announced a significant workforce reduction, laying off 75% of its employees and terminating its only ongoing clinical trial, reflecting the survival pressures in the biotech industry [1][2][5] Group 1: Workforce Reduction - The company initially planned to cut 50% of its workforce but escalated this to 75% within a month due to urgent financial needs [1] - As of March 31, Leap had $32.7 million in bank deposits, with the layoffs expected to incur approximately $3.2 million in severance costs [1] - The layoffs will severely impact the research and development team, which previously consisted of 41 out of 52 full-time employees [1] Group 2: Clinical Trial Termination - Leap decided to terminate the Phase II DeFianCe clinical trial for its DKK1 antibody drug, sirexatamab, which was aimed at treating colorectal cancer [1][2] - Despite reporting a total response rate (ORR) of 33% for sirexatamab compared to 20.2% for the placebo, the company cited the need for further analysis to achieve statistically significant benefits [2] - The CEO indicated that the decision to terminate the trial was influenced by the current market environment, marking a significant shift in the company's R&D strategy [2][5] Group 3: R&D Pipeline and Market Response - The development of sirexatamab has faced multiple setbacks, including the termination of its combination therapy with another drug for gastric cancer earlier this year [3] - The company's stock price has fallen below $1, reflecting investor concerns over its shrinking R&D pipeline [5] - Leap is exploring strategic alternatives, including potential sales or partnerships related to sirexatamab and another preclinical drug, FL-501 [5]

Core Insights - Leap Therapeutics has presented updated data from the DeFianCe study, indicating that sirexatamab in combination with bevacizumab and chemotherapy shows statistically significant improvements in overall response rate (ORR) and progression-free survival (PFS) for colorectal cancer (CRC) patients with high DKK1 levels and those who have not received prior anti-VEGF therapy [1][2][3] Study Results - In patients with high DKK1 levels (n=44), the sirexatamab Experimental Arm demonstrated a 32% higher ORR (48.0% vs. 15.8%) and a median PFS of 9.36 months compared to 5.88 months in the Control Arm [3][4] - For patients without prior anti-VEGF therapy (n=95), the sirexatamab Experimental Arm showed a 22% higher ORR (55.1% vs. 32.6%) and a median PFS of 10.94 months compared to 8.34 months in the Control Arm [4][3] - Across the intent-to-treat population (n=188), the sirexatamab Experimental Arm had an ORR of 36.2% compared to 25.5% in the Control Arm, with median PFS still maturing [4][3] Market Opportunity - The combination therapy has a significant market opportunity, targeting approximately 30,000 second-line treated CRC patients in the US and 160,000 in the next seven largest markets, particularly among the 25-50% of patients with high DKK1 levels and the 50% who have not received prior anti-VEGF therapy [7] - There is potential to expand into first-line CRC treatment, with an estimated 45,000 patients in the US and 265,000 in the next seven largest markets [7] Future Plans - Leap Therapeutics is considering a registrational Phase 3 clinical trial to further evaluate the efficacy of sirexatamab in the identified patient populations [7][2] - The company has engaged a leading financial advisor to explore business development opportunities to advance the development of sirexatamab [7]