Leap Therapeutics, Inc. (LPTX) is decreasing in the aftermarket – What is the news behind it?

Leap Therapeutics, Inc. (LPTX) saw a decrease of 8.21% after LPTX Announces the Proposed Public Offering of Common Stock and Pre-Funded Warrants. However, the last trading session closed at $3.41 with an increase of 23.1%.

Proposed Public Offering of Common Stock and Pre-Funded Warrants

LPTX announced on 1^st September 2021 that Leap has started an underwritten public offering of its common stock. The company plans to issue and sell pre-funded warrants to buy shares of its common stock to specified investors. Moreover, Leap will sell all of the common stock and warrants in the offering. Leap wants to provide the underwriters a 30-day option to buy up to 15% more of the securities in the public offering.

The offering is subject to market, regulatory, and other circumstances, and no guarantee can be given as to whether or when it will be completed, or as to the actual size or terms of the offering. The offering’s book-running managers will be Piper Sandler & Co., Raymond James & Associates, Inc., and Mizuho Securities USA LLC. The offering’s lead manager will be Robert W. Baird & Co. Incorporated.

LPTX Presents Updated Positive Data from the DisTinGuish Study of DKN-01 Plus Tislelizumab at the ESMO Congress

LPTX revised positive data from the first-line cohort of the DisTinGuish study on 16^th September 2021. Patients with high levels of DKK1 expression, who have a bad prognosis, exhibited positive responses to therapy. The additional data presented shows evidence that DKK1 is not only a critical biomarker in predicting response to DKN-01 and tislelizumab therapy but that the combination can activate many responses regardless of the PD-L1 status of the patient.

Second Quarter 2021 Financial Results

LPTX announced second-quarter 2021 financial results on 13^th September 2021.

• Firstly, in the second quarter of 2021, the company lost $9.5 million, compared to $6.5 million at the same time of 2020.
• Secondly, the exclusive option and licensing agreement with BeiGene for the development and commercialization of DKN-01 in Asia.
• Thirdly, in the second quarter of 2021, research and development costs were $7.2 million, up from $5.4 million in the same period of 2020.
• Lastly, an increase of $0.8 million in the paycheck and other related costs due to an increase in the headcount of research & design full-time employees. An increase of $0.6 million in production costs regarding clinical trial content based on the timing of production campaigns. And a boost of $0.3 million in clinical costs was the main driver of the $1.8 million increase in expenses.