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Dec 31, 2022

Leap Therapeutics Q4 2022 Earnings Report

Reported financial results for the fourth quarter and year ended December 31, 2022.

Key Takeaways

Leap Therapeutics reported its Q4 2022 financial results, highlighting the advancement of DKN-01 into a randomized controlled clinical trial for gastric cancer and the acquisition of Flame Biosciences, which included FL-301 and approximately $50 million in cash.

Advanced DKN-01 into a randomized controlled clinical trial in gastric cancer.

Entered into the new indication of colorectal cancer for DKN-01.

Acquired Flame Biosciences, enhancing Leap’s pipeline and financial strength.

Focused on executing the development plan for DKN-01 in 2023.

EPS
-$1.1
Previous year: -$1
+10.0%
Cash and Equivalents
$65.5M
Previous year: $115M
-43.0%
Total Assets
$70.4M
Previous year: $118M
-40.3%

Leap Therapeutics

Leap Therapeutics

Forward Guidance

In 2023, the company is focused on completing enrollment in studies for DKN-01, presenting new data, and identifying a new strategic partner. The plan for Claudin18.2 and GDF15 programs is to generate additional preclinical data to differentiate these antibodies and to prepare for future clinical trials.

Positive Outlook

  • Completing enrollment in Part C of the DisTinGuish study.
  • Completing enrollment in Part A of the DeFianCe study.
  • Presenting new data over the course of the year.
  • Identifying a new strategic partner as data is generated.
  • Generating additional preclinical data to differentiate Claudin18.2 and GDF15 antibodies.

Challenges Ahead

  • Clinical trials may be delayed, adversely affected, or impacted by COVID-19, global conflict, or supply chain related issues
  • Exposure to inflation, currency rate and interest rate fluctuations, as well as fluctuations in the market price of Leap’s traded securities
  • Leap’s ability to successfully execute its clinical trials and the timing of enrollment in and cost of such clinical trials
  • Leap’s ability to successfully enter into new strategic partnerships for DKN-01 or any of its other programs
  • Whether Leap’s cash resources will be sufficient to fund Leap’s continuing operations and the newly acquired Flame operations, including the liabilities of Flame incurred in connection with the completion of the merger