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CAMBRIDGE, Mass. - Leap Therapeutics, Inc. (NASDAQ:LPTX), whose shares have declined nearly 87% over the past six months according to InvestingPro data, announced Monday it has initiated a process to explore strategic alternatives to maximize shareholder value while reporting updated results from its Phase 2 DeFianCe study of sirexatamab in colorectal cancer patients.
The company reported that sirexatamab, an anti-DKK1 monoclonal antibody, demonstrated statistically significant improvements in progression-free survival among specific patient subgroups when combined with bevacizumab and chemotherapy compared to a control arm. With a current market capitalization of just $15.6 million, InvestingPro analysis suggests the stock is currently undervalued.
Patients with high DKK1 levels showed median progression-free survival of 9.36 months versus 5.88 months in the control group. Similar benefits were observed in patients without prior anti-VEGF therapy exposure and those with liver metastases.
"Sirexatamab demonstrated a statistically significant benefit in patients with high levels of DKK1, no prior exposure to anti-VEGF therapy, or liver metastasis," said Douglas E. Onsi, President and CEO of Leap.
Due to financial constraints, Leap plans to wind down the DeFianCe clinical trial and implement a workforce reduction of approximately 75% over the next two months. The company reported cash and cash equivalents of $32.7 million as of March 31, 2025. According to InvestingPro data, Leap maintains a healthy current ratio of 2.41, indicating strong short-term liquidity, and holds more cash than debt on its balance sheet. Discover more key financial metrics and 8 additional ProTips by subscribing to InvestingPro.
The Board of Directors has engaged Raymond James & Associates as financial advisor to explore options including potential sale or partnership opportunities for sirexatamab and FL-501, the company’s preclinical candidate.
The announcement was based on a press release statement from the company.
In other recent news, Leap Therapeutics has released updated results from its Phase 2 DeFianCe study, focusing on the investigational cancer drug sirexatamab. The study reveals promising outcomes for certain colorectal cancer patients, particularly those with high levels of the protein DKK1 or those who have not previously undergone anti-VEGF therapy. Patients in these groups showed improved response rates and progression-free survival when treated with sirexatamab in combination with bevacizumab and chemotherapy. The median overall survival has not yet been reached in these subsets, indicating potential long-term benefits. H.C. Wainwright has maintained a Neutral rating on Leap Therapeutics, citing uncertainties in the company’s development pipeline and the lack of significant stock valuation catalysts. The firm has not assigned a price target for the stock at this time. Leap Therapeutics is also considering a Phase 3 clinical trial to further assess sirexatamab’s efficacy and safety. Additionally, the company is exploring business opportunities to advance the development of sirexatamab, given the substantial market potential for colorectal cancer therapies.
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