Leap Therapeutics Reports $16.6 Million Net Loss, Implements Workforce Reduction

Leap Therapeutics, Inc. reported a net loss of $16.6 million for the three months ended June 30, 2025, a decrease from a net loss of $20.1 million in the same period of the previous year. For the six months ended June 30, 2025, the company recorded a net loss of $32.1 million, compared to a loss of $33.9 million for the same period in 2024. The reduction in losses is attributed to a significant decrease in operating expenses, which totaled $16.9 million for the second quarter of 2025, down from $21.3 million in the prior year. This decline was primarily driven by reduced research and development costs, which fell to $10.5 million from $17.9 million year-over-year, reflecting a strategic shift in the company's focus and a reduction in workforce.

In terms of financial position, Leap Therapeutics reported cash and cash equivalents of $18.1 million as of June 30, 2025, a decrease from $47.2 million at the end of 2024. The company’s total assets also declined to $20.0 million from $49.1 million at the end of the previous fiscal year. The accumulated deficit increased to $499.4 million, highlighting the ongoing challenges in achieving profitability. The company has not generated any revenue from product sales and continues to rely on external financing to support its operations.

Strategically, Leap Therapeutics has undergone significant organizational changes, including a workforce reduction of approximately 75% to conserve cash and reduce operating costs. This restructuring resulted in $4.5 million in charges during the second quarter of 2025. The company is also exploring strategic alternatives to maximize shareholder value, including potential mergers, asset sales, or partnerships related to its lead product candidate, sirexatamab (DKN-01), and its preclinical program, FL-501. The engagement of Raymond James & Associates, Inc. as a financial advisor underscores the urgency of these efforts.

Operationally, the company has made progress in its clinical development, particularly with sirexatamab, which is currently in trials for treating cancer. However, the company has not yet achieved any regulatory approvals for its products. The ongoing clinical trials and the potential for future partnerships are critical indicators of Leap Therapeutics' ability to navigate its financial challenges and achieve market acceptance for its therapies.

Looking ahead, Leap Therapeutics faces substantial uncertainty regarding its ability to continue as a going concern. The company has acknowledged that it expects to incur operating losses for the foreseeable future and has raised concerns about its ability to secure additional funding. The outcome of its strategic initiatives will be pivotal in determining the company's future trajectory and operational viability.