Leap Therapeutics, Inc. (LPTX) stock prices were own by a marginal 0.62% as of the market closing on June 3rd, 2021, bringing the price per share down to USD$1.61. After-hours trading saw the stock surge by 14.91%, bringing it up to USD$1.85.
Net Loss Reports
Net loss reported for the first quarter of the fiscal year 2021 amounted to USD$9.1 million, up from the USD$7.2 million reported for the same time period of the prior fiscal year. This difference is largely attributable to increased development activity for the DKN-01 program. Also facilitate the significant increase in net loss was an increase in headcount and compensation expenses as a result of the company’s growth over the past few quarters.
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R&D Expenses
Expenses incurred as a result of the company’s research and development was reported at USD$6.8 million for the first quarter of fiscal 2021, up from the USD$4.6 million reported for the year-ago quarter. This USD$2.2 million difference in R&D expenses is primarily attributable to a USD$0.8 million increase in payroll and other related expenses because of an increase in the headcount of the LPTC R&D team. Also contributing to the difference was a USD$0.6 million increase in manufacturing costs related to clinical trial material, as well as a USD$0.8 million increase in the costs of clinical trials due to the timing of patient enrollment.
G&A Costs
General and Administrative expenses were reported at USD$2.7 million for the first quarter of the fiscal year 2021, up from the USD$2.2 million reported for the same time period of the prior fiscal year. The year-over-year difference is largely attributable to a USD$0.3 million increase in payroll and costs associated with an expanded workforce. Also contributing to the difference was a USD$0.2 million increase in professional fees arising from recruitment and information technology costs.
Licensing Revenue
Revenue generated from licensing for the first quarter of fiscal 2021 was reported at USD$0.4 million, the same as reports from the year-ago quarter. The revenue is largely related to the BeiGene Agreement, which facilitates the development and commercialization of DKN-01 in Asia (excluding Japan), Australia, and New Zealand. The Agreement has been effective since January 3rd, 2020.
Future Outlook for LPTX
Armed with a solid liquidity position, with cash and cash equivalents totaling USD$43.5 million as of March 31st, 2021, LPTX is poised to continue its trajectory of success through to the end of the fiscal year and beyond. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
