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Mar 31
Leap Therapeutics Q1 2025 Earnings Report
Leap Therapeutics reported a net loss of $15.435 million for Q1 2025, with increased research and development expenses and decreased interest income compared to the prior year.
Key Takeaways
Leap Therapeutics experienced a net loss of $15.435 million in the first quarter of 2025, an increase from the $13.820 million net loss in the same period last year. This was primarily driven by higher research and development expenses, particularly in the DKN-01 program, and a significant decrease in interest income. The company also announced a strategic restructuring to prioritize clinical development and reduce its workforce.
Net loss increased to $15.435 million in Q1 2025 from $13.820 million in Q1 2024.
Research and development expenses rose to $12.911 million, up from $11.299 million in the prior year, mainly due to increased clinical trial costs for the DKN-01 program.
Interest income decreased significantly to $0.437 million in Q1 2025 from $0.775 million in Q1 2024.
The company announced a strategic restructuring, including a 50% workforce reduction, to prioritize clinical development of sirexatamab in CRC and advance FL-501 preclinically.
Leap Therapeutics
Leap Therapeutics
Forward Guidance
Leap Therapeutics expects to continue generating operating losses and will seek additional funding through various channels to support future operations. The company anticipates increased research and development expenses for the foreseeable future.
Positive Outlook
- Strong signal from the DeFianCe study supports a registrational Phase 3 clinical trial for sirexatamab in second-line MSS CRC, representing a significant potential global market opportunity.
- Advancing FL-501 as a potentially best-in-class molecule based on favorable safety profile and strong pharmacodynamic activity.
- Engaged leading financial advisor to explore business development opportunities for sirexatamab.
- Prioritizing clinical focus on the development of sirexatamab in CRC and advancing FL-501 preclinically.
- Potential for future funding through public or private equity financings, government programs, collaboration agreements, or licenses.
Challenges Ahead
- Substantial doubt exists about the company's ability to continue as a going concern for at least the next 12 months due to the need for additional capital and uncertainties in raising such funding.
- Expects to continue to generate operating losses for the foreseeable future.
- Inability to obtain funding, as and when needed, could force delays, reductions, or elimination of clinical trials and pipeline expansion.
- Potential for significant additional financial resources and time required for clinical development if FDA or other regulatory authorities require trials beyond current anticipation.
- Anticipates incurring one-time costs of approximately $0.35 million to $0.45 million in connection with the overall workforce reduction, primarily in Q2 2025.