As Leap shores up its capital position and targets tumors with data-driven trials, LPTX stock could grow by leaps and bounds
The onset of Covid-19 has put the term “antibodies” into the public lexicon, but only a handful of biotechnology are truly unlocking the full potential of antibody-based therapies in the field of advanced immuno-oncology.
Among the leaders in this high-need medical niche is Leap Therapeutics (LPTX), a Cambridge, Massachusetts-headquartered biopharmaceutical company that acquires and develops therapies for the treatment of cancer.
The antibodies developed by Leap Therapeutics are designed to target key cellular pathways that enable cancer to grow and proliferate, known as cancer cell signaling, and pathways that help the body’s immune system to identify and treat cancer.
It’s exciting science, but just as importantly, the company is in an excellent capital position to advance that science while offering the stakeholders a long-term opportunity to track the progress of Leap’s best-in-class clinical development programs.
A Closer Look at LPTX Stock
It really wasn’t that long ago when the LPTX stock bulls were setting their sights on the key $10 price level. I believe that the potential for another push to that level, and perhaps much further than that, could be realized in 2021.
In the final weeks of 2020, LPTX stock remains right-priced for biotech-sector bargain hunters. We’ve seen some serious moves in LPTX stock lately; for instance, the share price gained 14.59% on December 18, closing at $2.12.
That’s a highly affordable price point even after a power-packed day for LPTX stock. It wasn’t the first time and it won’t be the last time that LPTX makes an explosive move, as the buyers already pushed the stock up to $3.18 earlier this year.
Even during the onset of the coronavirus crisis in March, LPTX stumbled along with the entire stock market but readily recovered. By early June, the bulls had already brought LPTX stock back to its pre-pandemic peak, thereby demonstrating the resiliency of this little runner.
Leveraging the Power of Antibodies
If any up-and-coming biotech firm could be called “antibody-centric,” it would be Leap Therapeutics. Leap’s primary clinical candidate, DKN-01, consists of an antibody that targets the Dickkopf-1 (DKK1) protein, which regulates Wnt signaling pathways.
Aberrant Wnt signaling is often implicated in cancer, enabling cancer cells to grow and divide and to suppress the immune system. And, the inhibition of DKK1 has demonstrated anti-tumor activity in preclinical models.
DKN-01 is currently in clinical trials involving patients presenting with esophagogastric, hepatobiliary, gynecologic, and prostate cancers. This is a truly international initiative as Leap has entered into a strategic partnership with BeiGene, Ltd. for the rights to develop DKN-01 in Asia (excluding Japan), Australia, and New Zealand.
Moreover, a major clinical milestone was achieved as Leap announced that the FDA granted Fast Track designation to DKN-01 for the treatment of patients with gastric and gastroesophageal junction adenocarcinoma under specified clinical conditions.
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Of course, an ambitious clinical program and even FDA Fast Track designation wouldn’t mean much if the company didn’t have the financial standing to pursue its objectives.
Fortunately, Leap Therapeutics is in as solid a financial position as any biotech-sector investor could expect for a company of this size. In fact, as of Sept. 30, 2020, the company was sitting pretty with a $58 million cash position.
A value-added strategic partnership with BeiGene should only serve to firm up Leap’s future capital position. Through an option and license agreement to develop DKN-01, Leap stands to gain royalties in the high-single-digit to mid-teen double-digits. All told, the BeiGene deal indicates a whopping $132 million in total option exercise, clinical, regulatory, and commercial milestones.
Cost reduction is also evidently in effect as Leap Therapeutics’ research and development expenses totaled $5.4 million for the third quarter of 2020, signifying an improvement over the $5.8 million in R&D expenses recorded during the comparable period of 2019. This decrease in expenses was primarily driven by Leap’s reductions in clinical trial costs.
The Bottom Line
For a low-cost biotech bet with demonstrated explosive potential, you can’t get much better than LPTX stock.
And with a firm capital position and a future-forward “antibody-centric” clinical approach, Leap Therapeutics is poised to advance DKN-01 from clinical candidate to international game changer in cancer-fighting science.
