Full Press Release Details
Leap Therapeutics Reports Third Quarter 2023
Cambridge, MA - November 13, 2023 - Leap Therapeutics, Inc.
(Nasdaq:LPTX), a biotechnology company focused on developing targeted and immuno-oncology therapeutics, today reported financial results
for the third quarter ended September 30, 2023.
"Leap continued to make great strides
this quarter including advancing into the 130 patient, randomized controlled Part B of the DeFianCe study evaluating
DKN-01 plus bevacizumab and chemotherapy in second-line colorectal cancer, after exceeding our 20% overall response rate
threshold in Part A. We are excited by the progress made and plan on presenting new data from Part A at a medical
conference in January 2024," said Douglas E. Onsi, President and Chief Executive Officer of Leap. "In addition,
we're focused on executing the DisTinGuish study evaluating DKN-01 plus tislelizumab and chemotherapy in first-line gastric
cancer, and we expect to complete enrollment into the 160-patient, randomized controlled Part C of the trial this
DKN-01 Development Update
Selected Third Quarter 2023 Financial Results
Net Loss was $13.7 million for the third quarter
2023, compared to $15.1 million for the same period in 2022. The decrease was primarily due to decreased research and development expenses
and increased interest income.
Research and development expenses were $11.5 million
for the third quarter 2023, compared to $12.1 million for the same period in 2022. The decrease in research and development expenses was
primarily due to a decrease of $2.5 million in manufacturing costs related to clinical trial material and manufacturing campaigns. This
decrease was partially offset by an increase of $1.1 million in clinical trial costs and an increase of $0.8 million in payroll and other
related expenses due to an increase in headcount of our research and development full-time employees.
General and administrative expenses were $3.3
million for the third quarter 2023, compared to $3.2 million for the same period in 2022. The increase in general and administrative expenses
was primarily due to an increase of $0.1 million in payroll and other related expenses due to an increase in headcount of our general
and administrative full-time employees.
Cash and cash equivalents totaled $80.7 million
at September 30, 2023. Research and development incentive receivables totaled $0.8 million at September 30, 2023.
About Leap Therapeutics
Leap Therapeutics (Nasdaq: LPTX) is focused on
developing targeted and immuno-oncology therapeutics. Leap's most advanced clinical candidate, DKN-01, is a humanized monoclonal antibody
targeting the Dickkopf-1 (DKK1) protein. DKN-01 is being developed in patients with esophagogastric, gynecologic, and colorectal cancers.
FL-301, is a humanized monoclonal antibody targeting Claudin18.2, being developed in patients with gastric and pancreatic cancer. Leap
also has preclinical antibody programs targeting Claudin18.2/CD137 and GDF15. For more information about Leap Therapeutics, visit http://www.leaptx.com
or view our public filings with the SEC that are available via EDGAR at http://www.sec.gov or via https://investors.leaptx.com/.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements
within the meaning of the federal securities laws. Such statements are based upon current plans, estimates and expectations of the management
of Leap that are subject to various risks and uncertainties that could cause actual results to differ materially from such statements.
The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will
be achieved. Words such as "anticipate," "expect," "project," "intend," "believe,"
"may," "will," "should," "plan," "could," "continue," "target,"
"contemplate," "estimate," "forecast," "guidance," "predict," "possible,"
"potential," "pursue," "likely," and words and terms of similar substance used in connection with
any discussion of future plans, actions or events identify forward-looking statements.
All statements, other than historical facts, including
statements regarding the continuation over time of the clinical collaboration with BeiGene on the ongoing Part C of the DisTinGuish
trial, with BeiGene continuing to supply tislelizumab; the expected benefits of the merger with Flame Biosciences; the cash runway into
2025 and the sufficiency of Leap's cash, cash equivalents and short-term investments to fund operations; the anticipated timing
for completion of or success of enrollment in clinical trials and release of clinical data, and any outcomes of such trials; the potential,
safety, efficacy, and regulatory and clinical progress of Leap's product candidates; our future preclinical and clinical development
plans in connection with our programs; the ability to enter into a new strategic partnership for DKN-01 or any of Leap's other programs;
the ability of NovaRock Biotherapeutics to conduct the FL-301 clinical trial in China; and any assumptions underlying any of the foregoing,
are forward-looking statements. Important factors that could cause actual results to differ materially from Leap's plans, estimates
or expectations could include, but are not limited to: (i) Leap's ability to successfully execute its clinical trials and the
timing of enrollment in and cost of such clinical trials; (ii) the results of Leap's clinical trials and pre-clinical studies;
(iii) Leap's ability to successfully enter into new strategic partnerships for DKN-01 or any of its other programs; (iv) whether
any Leap clinical trials and products will receive approval from the U.S. Food and Drug Administration or equivalent foreign regulatory
agencies; (v) exposure to inflation, currency rate and interest rate fluctuations, as well as fluctuations in the market price of
Leap's traded securities; and (vi) that the initiation, conduct, and completion of clinical trials, laboratory operations,
manufacturing campaigns, and other studies may be delayed, adversely affected, or impacted by global conflict, or supply chain
related issues. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties.
No representations or warranties (expressed or Implied) are made about the accuracy of any such forward-looking statements. Leap may not
actually achieve the forecasts disclosed in such forward-looking statements, and you should not place undue reliance on such forward-looking
statements. Such forward-looking statements are subject to a number of material risks and uncertainties including but not limited to those
set forth under the caption "Risk Factors" in Leap's most recent Annual Report on Form 10-K filed with the SEC,
as well as discussions of potential risks, uncertainties, and other important factors in its subsequent filings with the SEC. Any forward-looking
statement speaks only as of the date on which it was made. Neither Leap, nor any of its affiliates, advisors or representatives, undertake
any obligation to publicly update or revise any forward-looking statement, whether as result of new information, future events or otherwise,
except as required by law. These forward-looking statements should not be relied upon as representing Leap's views as of any date
subsequent to the date hereof.
President & Chief Executive Officer
Leap Therapeutics, Inc.
Leap Therapeutics, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
| (Unaudited) | (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 11,503 | $ | 12,102 | $ | 61,549 | $ | 33,931 | ||||||||
| General and administrative | 3,330 | 3,186 | 10,672 | 8,889 | ||||||||||||
| Total operating expenses | 14,833 | 15,288 | 72,221 | 42,820 | ||||||||||||
| Loss from operations | (14,833 | ) | (15,288 | ) | (72,221 | ) | (42,820 | ) | ||||||||
| Interest income | 1,084 | 360 | 3,089 | 404 | ||||||||||||
| Interest expense | - | (11 | ) | - | (49 | ) | ||||||||||
| Australian research and development incentives | 554 | 652 | 1,124 | 1,276 | ||||||||||||
| Foreign currency loss | (501 | ) | (807 | ) | (953 | ) | (1,305 | ) | ||||||||
| Change in fair value of Series X preferred stock warrant liability | - | - | 12 | - | ||||||||||||
| Net loss attributable to common stockholders | $ | (13,696 | ) | $ | (15,094 | ) | $ | (68,949 | ) | $ | (42,494 | ) | ||||
| Net loss per share | ||||||||||||||||
| Basic & diluted | $ | (0.51 | ) | $ | (1.33 | ) | $ | (3.78 | ) | $ | (3.75 | ) | ||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic & diluted | 26,987,182 | 11,323,909 | 18,240,455 | 11,323,909 |
Leap Therapeutics, Inc.
Consolidated Balance Sheets
thousands, except share and per share amounts)
| September 30, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 80,743 | $ | 65,500 | ||||
| Research and development incentive receivable | 753 | 2,099 | ||||||
| Prepaid expenses and other current assets | 265 | 351 | ||||||
| Total current assets | 81,761 | 67,950 | ||||||
| Property and equipment, net | 9 | 20 | ||||||
| Right of use assets, net | 363 | 669 | ||||||
| Deferred costs | - | 576 | ||||||
| Other long term assets | - | 30 | ||||||
| Deposits | 913 | 1,108 | ||||||
| Total assets | $ | 83,046 | $ | 70,353 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,899 | $ | 5,657 | ||||
| Accrued expenses | 4,770 | 5,152 | ||||||
| Lease liability - current portion | 369 | 416 | ||||||
| Total current liabilities | 11,038 | 11,225 | ||||||
| Non current liabilities: | ||||||||
| Lease liability, net of current portion | - | 262 | ||||||
| Total liabilities | 11,038 | 11,487 | ||||||
| Stockholders' equity: | ||||||||
| Common stock, $0.001 par value; 240,000,000 shares authorized; 25,565,414 and 9,902,137 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 26 | 10 | ||||||
| Additional paid-in capital | 458,339 | 376,896 | ||||||
| Accumulated other comprehensive income | 760 | 128 | ||||||
| Accumulated deficit | (387,117 | ) | (318,168 | ) | ||||
| Total stockholders' equity | 72,008 | 58,866 | ||||||
| Total liabilities and stockholders' equity | $ | 83,046 | $ | 70,353 |
Leap Therapeutics, Inc.
Condensed Consolidated
Statements of Cash Flows
| (Unaudited) | (Unaudited) | |||||||||||||||
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Cash used in operating activities | $ | (10,488 | ) | $ | (12,253 | ) | $ | (33,373 | ) | $ | (36,030 | ) | ||||
| Cash provided by investing activities | - | - | 48,969 | - | ||||||||||||
| Cash used in financing activities | (1 | ) | - | (30 | ) | (210 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (183 | ) | (322 | ) | (323 | ) | (368 | ) | ||||||||
| Net increase (decrease) in cash and cash equivalents | (10,672 | ) | (12,575 | ) | 15,243 | (36,608 | ) | |||||||||
| Cash and cash equivalents at beginning of period | 91,415 | 90,883 | 65,500 | 114,916 | ||||||||||||
| Cash and cash equivalents at end of period | $ | 80,743 | $ | 78,308 | $ | 80,743 | $ | 78,308 |