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Investing.com -- Leap Therapeutics Inc (NASDAQ:LPTX) stock surged 9% following the company’s announcement of a strategic review process to maximize shareholder value amid ongoing financial constraints.
The clinical-stage biotechnology company reported it has engaged Raymond (NSE:RYMD) James & Associates as its exclusive financial advisor to explore strategic alternatives, including potential sale or partnership opportunities for its drug candidates sirexatamab and FL-501, as well as leveraging its cash balance of $32.7 million as of March 31, 2025.
Leap also disclosed plans to implement a significant workforce reduction of approximately 75% over the next two months as its DeFianCe study completes. The restructuring is expected to cost around $3.2 million, with most expenses recognized in the third quarter of 2025.
"Due to current market conditions, we have decided to wind-down the DeFianCe clinical trial and further reduce internal expenses. In parallel, we have initiated a review of the full range of strategic alternatives to maximize shareholder value," said Douglas E. Onsi, President and Chief Executive Officer of Leap.
The company reported updated results from Part B of its DeFianCe study, noting that sirexatamab demonstrated statistically significant benefits in specific patient subgroups with high levels of DKK1, no prior exposure to anti-VEGF therapy, or liver metastasis. The company believes the objectives of the study have been achieved with the additional patient follow-up.
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