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Leap Therapeutics Reports Second Quarter 2025 Financial Results

Leap Therapeutics, Inc. (Nasdaq:LPTX), a Boston-based biotechnology firm specializing in targeted and immunotherapy innovations, recently disclosed its financial performance for the second quarter of 2025. The report reveals pivotal shifts within the company aimed at enhancing shareholder value through strategic restructuring.

Strategic Initiatives

In the recent quarter, Leap Therapeutics initiated significant measures to realign its focus on corporate development. This involved a substantial 75% reduction in workforce as part of a restructuring to streamline operations and reduce expenditures. Douglas E. Onsi, the firm's President and CEO, emphasized that these changes are designed to repurpose resources towards high-potential therapeutic candidates, specifically sirexatamab (DKN-01) and FL-501. This approach follows the completion of patient treatments in the DeFianCe trial, which studied the efficacy of sirexatamab in combination with bevacizumab and chemotherapy in colorectal cancer (CRC) patients.

Onsi stated, “As we navigate these changes, our primary goal is to maximize value for our shareholders. We appreciate the dedication of our staff and their contributions towards advancing new cancer therapies.”

Financial Performance

Regarding financial results, Leap Therapeutics reported a net loss of $16.6 million in Q2 2025, a decrease from the $20.4 million loss recorded in the same period of 2024. This improvement was largely attributed to a reduction in both research and development expenses, as well as general and administrative costs. Key highlights from the financial results include:

• - Research and development expenditures fell to $10.5 million from $17.9 million the year prior. Notable decreases in clinical trial costs, payroll, and manufacturing significantly contributed to this reduction.
• - General and administrative expenses also saw a decline to $1.8 million from $3.4 million last year.

Despite these reductions, the company incurred approximately $4.5 million in restructuring charges related to the workforce reduction, primarily reflecting severance and benefits costs.

Ongoing Clinical Trials

In a significant update, Leap Therapeutics revealed promising outcomes from the DeFianCe study for sirexatamab in CRC patients. The data reported as of May 22, 2025, highlighted a statistically significant improvement in overall response rate (ORR) as well as progression-free survival (PFS) among patients with elevated DKK1 levels, no previous anti-VEGF therapy, and absence of liver metastasis. The company anticipates presenting the final study results at an upcoming medical conference, indicating a commitment to transparency and engagement within the medical community.

Forward-Looking Statements

Leap is currently embarking on an imperative evaluation of potential strategic alternatives aimed at preserving and maximizing shareholder value. This process includes assessing opportunities for partnerships or sales related to its key products, sirexatamab and FL-501. The Board of Directors has engaged Raymond James & Associates, Inc. as an exclusive financial advisor for this strategic review.

Leap Therapeutics remains steadfast in its mission. Although recent quarters have brought about considerable internal challenges, the focus on strategic development and therapeutic innovation is positioned to enhance the company's future prospects in the ever-evolving biopharmaceutical landscape. As Leap Therapeutics continues to maneuver through this transition, stakeholders await further updates that may shape the trajectory of its initiatives in precision medicine for oncology.