Leap Therapeutics Reports Fourth Quarter and Full Year 2020 Financial Results
2020 Leap Highlights:
- Signed agreement with BeiGene, Ltd. for rights to Leap's anti-DKK1 antibody, DKN-01, in
Asia (excludingJapan ),Australia and New Zealand - Completed a
$51.75 million public offering of common stock and pre-funded warrants to purchase common stock - Presented updated data from study of DKN-01 plus pembrolizumab in esophagogastric (EGC) cancer demonstrating positive outcomes in
DKK1 -high patients - Data for DKN-01 in endometrial cancer demonstrates single agent activity in biomarker-selected patients
- First patient dosed in Phase 2a study of DKN-01 in combination with tislelizumab, BeiGene's anti-PD-1 antibody, for the treatment of metastatic gastric or gastroesophageal junction (G/GEJ) cancer
- Received Orphan Drug Designation and Fast Track Designation for DKN-01 from FDA
"2020 was a transformative year for Leap as we executed our first strategic alliance with BeiGene and advanced our DKN-01 development program, initiating our Phase 2a combination study with BeiGene's tislelizumab in gastric cancer patients," said
DKN-01 Development Update
DKN-01 is a humanized monoclonal antibody that binds to and blocks the activity of the Dickkopf-1 (
- Leap and BeiGene Announced First Patient Dosed in Study of DKN-01 in Combination with Tislelizumab for the Treatment of Metastatic Gastric/Gastroesophageal Junction (G/GEJ) Cancer – In
September 2020 , Leap and BeiGene announced that the first patient was dosed in the DisTinGuish trial (NCT04363801), a Phase 2a, nonrandomized, open-label, multicenter study of Leap's DKN-01 in combination with BeiGene's tislelizumab with or without chemotherapy as first-line or second-line therapy in adult patients with inoperable, locally advanced G/GEJ adenocarcinoma. The study, which will be conducted in two parts, is currently evaluating approximately forty patients with second-line G/GEJ cancer whose tumors areDKK1 -high per perspective analysis. In addition, the study is evaluating the combination of DKN-01 with tislelizumab and capecitabine and oxaliplatin in approximately twenty patients with first-line G/GEJ cancer. Initial data is expected in the second half of 2021. - Leap Presented Updated Data from DKN-01 in EGC Demonstrating Positive Outcomes in
DKK1 -high Patients – At theSociety for Immunotherapy of Cancer's (SITC) 35th Anniversary Annual Meeting, Leap presented clinical data from the Phase 1b/2a clinical trial of DKN-01 in patients with advanced EGC. In the study, high levels of tumoralDKK1 expression correlated with improved clinical outcomes in heterogeneous EGC patients treated with DKN-01 monotherapy or in combination with paclitaxel or the anti-PD-1 antibody, pembrolizumab. - Leap Presented Updated Data for DKN-01 in Endometrial Cancer Demonstrating Single Agent Activity in Biomarker-selected Patients – At the
American Association for Cancer Research (AACR) Virtual Special Conference on Endometrial Cancer :New Biology Driving Research and Treatment, Leap presented additional clinical data from the epithelial endometrial cancer (EEC) patients treated with DKN-01 monotherapy as part of its ongoing Phase 2 clinical trial for DKN-01, as both a monotherapy and in combination with paclitaxel chemotherapy, in patients with advanced gynecological malignancies. In the study, DKN-01 demonstrated single agent activity in biomarker-selected EEC patients, including an ongoing complete response that is over 2.5 years in duration and prolonged progression-free survival. Additional data from this study will be presented at theSociety of Gynecologic Oncology 2021 Annual Meeting on Women's Cancer. - Leap Receives Orphan Drug Designation and Fast Track Designation – On
June 11, 2020 , the FDA granted Orphan Drug Designation to DKN-01 for the treatment of gastroesophageal junction and gastric cancer. OnSeptember 24, 2020 , the FDA granted Fast Track Designation to DKN-01 in combination with tislelizumab for the treatment of patients with gastric and gastroesophageal junction adenocarcinoma whose tumors express highDKK1 , following disease progression on or after prior fluoropyrimidine- and platinum-containing chemotherapy and if appropriate, human epidermal receptor growth factor (HER2)/neu-targeted therapy.
Selected Year-End and Fourth Quarter 2020 Financial Results
Net Loss was
License revenues were
Research and development expenses were
General and administrative expenses were
Cash and cash equivalents totaled
About
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. These statements include Leap's expectations with respect to the development and advancement of DKN-01, including the initiation, timing and design of future studies, enrollment in future studies, potential for the receipt of a future option exercise, milestones or royalty payments from BeiGene, and other future expectations, plans and prospects. Although Leap believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from our expectations. Such risks and uncertainties include, but are not limited to: that the initiation, conduct, and completion of clinical trials, laboratory operations, manufacturing campaigns, and other studies may be delayed, adversely affected, or impacted by COVID-19 related issues; the accuracy of our estimates regarding expenses, future revenues, capital requirements and needs for financing; the outcome, cost, and timing of our product development activities and clinical trials; the uncertain clinical development process, including the risk that clinical trials may not have an effective design or generate positive results; our ability to obtain and maintain regulatory approval of our drug product candidates; the size and growth potential of the markets for our drug product candidates; our ability to continue obtaining and maintaining intellectual property protection for our drug product candidates; and other risks. Detailed information regarding factors that may cause actual results to differ materially will be included in
CONTACT:
President & Chief Executive Officer
617-714-0360
donsi@leaptx.com
Investor Relations
212-600-1902
heather@argotpartners.com
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||||||||||||||
Consolidated Statements of Operations |
||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||
(Unaudited) |
||||||||||||||
Year Ended |
Three Months Ended |
|||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||
License revenue |
$ 1,500 |
$ - |
$ 375 |
$ - |
||||||||||
Operating expenses: |
||||||||||||||
Research and development |
20,423 |
24,366 |
5,101 |
5,668 |
||||||||||
General and administrative |
9,616 |
9,085 |
2,428 |
2,604 |
||||||||||
Total operating expenses |
30,039 |
33,451 |
7,529 |
8,272 |
||||||||||
Loss from operations |
(28,539) |
(33,451) |
(7,154) |
(8,272) |
||||||||||
Interest income |
93 |
313 |
2 |
32 |
||||||||||
Interest expense |
(39) |
(23) |
3 |
(2) |
||||||||||
Australian research and development incentives |
231 |
132 |
(112) |
3 |
||||||||||
Foreign currency gains |
738 |
126 |
549 |
240 |
||||||||||
Loss before income taxes |
(27,516) |
(32,903) |
(6,712) |
(7,999) |
||||||||||
Income taxes |
2 |
3 |
2 |
3 |
||||||||||
Net loss |
(27,514) |
(32,900) |
(6,710) |
(7,996) |
||||||||||
Dividend attributable to down round feature of warrants |
(303) |
(359) |
0 |
- |
||||||||||
Dividend attributable to Series A & B convertible preferred stock |
(372) |
- |
0 |
- |
||||||||||
Series A & B convertible preferred stock - beneficial conversion feature |
(9,399) |
- |
- |
- |
||||||||||
Net loss attributable to common stockholders |
$ (37,588) |
$ (33,259) |
$ (6,710) |
$ (7,996) |
||||||||||
Net loss per share |
||||||||||||||
Basic |
$ (0.63) |
$ (1.47) |
$ (0.09) |
$ (0.33) |
||||||||||
Diluted |
$ (0.63) |
$ (1.47) |
$ (0.09) |
$ (0.33) |
||||||||||
Weighted average common shares outstanding |
||||||||||||||
Basic |
59,327,713 |
22,582,687 |
76,376,160 |
24,194,877 |
||||||||||
Diluted |
59,327,713 |
22,582,687 |
76,376,160 |
24,194,877 |
|
||||||||||
Consolidated Balance Sheets |
||||||||||
(in thousands, except share and per share amounts) |
||||||||||
|
||||||||||
2020 |
2019 |
|||||||||
Assets |
||||||||||
Current assets: |
||||||||||
Cash and cash equivalents |
$ 52,071 |
$ 3,891 |
||||||||
Research and development incentive receivable |
73 |
185 |
||||||||
Prepaid expenses and other current assets |
130 |
165 |
||||||||
Total current assets |
52,274 |
4,241 |
||||||||
Property and equipment, net |
65 |
124 |
||||||||
Right of use assets, net |
528 |
1,026 |
||||||||
Deferred tax assets |
179 |
127 |
||||||||
Deferred costs |
345 |
831 |
||||||||
Deposits |
980 |
1,099 |
||||||||
Total assets |
$ 54,371 |
$ 7,448 |
||||||||
Liabilities and Stockholders' Equity (Deficiency) |
||||||||||
Current liabilities: |
||||||||||
Accounts payable |
$ 2,717 |
$ 4,571 |
||||||||
Accrued expenses |
2,747 |
3,441 |
||||||||
Deferred revenue - current portion |
1,500 |
- |
||||||||
Lease liability - current portion |
408 |
474 |
||||||||
Total current liabilities |
7,372 |
8,486 |
||||||||
Non current liabilities: |
||||||||||
Restricted stock liability |
204 |
159 |
||||||||
Lease liability, net of current portion |
144 |
552 |
||||||||
Total liabilities |
7,720 |
9,197 |
||||||||
Stockholders' equity (deficiency): |
||||||||||
Common stock, |
60 |
24 |
||||||||
Additional paid-in capital |
270,155 |
193,319 |
||||||||
Accumulated other comprehensive income (loss) |
(579) |
76 |
||||||||
Accumulated deficit |
(222,985) |
(195,168) |
||||||||
Total stockholders' equity (deficiency) |
46,651 |
(1,749) |
||||||||
Total liabilities and stockholders' equity (deficiency) |
$ 54,371 |
$ 7,448 |
Leap Therapeutics, Inc. |
||||||||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||||||||
(in thousands) |
||||||||||||||
(Unaudited) |
||||||||||||||
Year Ended |
Three Months Ended |
|||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||
Cash used in operating activities |
$ (25,957) |
$ (26,902) |
$ (5,988) |
$ (5,894) |
||||||||||
Cash provided by (used in) investing activities |
25 |
(85) |
- |
15 |
||||||||||
Cash provided by (used in) financing activities |
73,997 |
14,817 |
- |
(19) |
||||||||||
Effect of exchange rate changes on cash and cash equivalents |
115 |
(223) |
84 |
(269) |
||||||||||
Net increase (decrease) in cash and cash equivalents |
$ 48,180 |
$ (12,393) |
(5,904) |
(6,167) |
||||||||||
Cash and cash equivalents at beginning of period |
3,891 |
16,284 |
57,975 |
10,058 |
||||||||||
Cash and cash equivalents at end of period |
$ 52,071 |
$ 3,891 |
$ 52,071 |
$ 3,891 |
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