Leap Therapeutics (LPTX) AI Stock Analysis

• Market Cap: $13.87M
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.94
• Revenue Growth: N/A
• EPS Growth: 64.01%
• Country: US
• Employees: 52
• Sector: Healthcare
• Sector Strength: 44
• Industry: Biotechnology
• EPS (TTM): -0.37
• Shares Outstanding: 41,439,530
• 10 Day Avg. Volume: 351,404
• 30 Day Avg. Volume: 2,276,381
• PEG Ratio: -0.03
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.23
• Enterprise Value/Market Cap: -1.35
• Enterprise Value/Revenue: -14.74
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 0.07
• 1Y Price Target: $3.00
• Price Target Upside: 782.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 31 Underperform
• Price Target: ―

Leap Therapeutics faces significant financial challenges with persistent losses and no revenue growth, resulting in a low financial performance score. The technical analysis suggests bearish trends with some potential for short-term volatility. The company’s valuation metrics are also unfavorable due to negative earnings. No recent earnings call or corporate events data are available to impact the score further.

Positive Factors

Efficacy Data

Promising efficacy data point to market potential of DNK-01 in approximately 25%-50% of 2L patients.

Regulatory Pathway

Management believes the data in CRC is strong enough to initiate a conversation with FDA to seek a regulatory pathway based on the positive objective response data in DeFianCe.

Treatment Efficacy

Encouraging data in a niche CRC population showed a higher objective response rate for sirexatamab compared to the control group.

Negative Factors

Financial Overhang

Mixed and inconclusive survival data, along with the worsened financial overhang after the stock reaction, leave questions about the viability of the path ahead.

Market Potential

Sirexatamab did not show benefit in gastroesophageal/gastric cancer, lowering the overall market potential of the drug.

Pipeline Development

Uncertainties regarding the company's pipeline development and lack of meaningful catalysts contribute to the Neutral rating on LPTX.

Leap Therapeutics Business Overview & Revenue Model

Company Description

Leap Therapeutics, Inc., a biopharmaceutical company, acquires and develops therapies for the treatment of cancer. Its lead clinical stage programs include DKN-01, a monoclonal antibody that inhibits Dickkopf-related protein 1, which is in multiple ongoing clinical trials for treating esophagogastric, hepatobiliary, gynecologic, and prostate cancers. Leap Therapeutics, Inc. has an option and license agreement with BeiGene, Ltd. to develop and commercialize DKN-01 in Asia (excluding Japan), Australia, and New Zealand. The company was formerly known as HealthCare Pharmaceuticals, Inc. and changed its name to Leap Therapeutics, Inc. in November 2015. Leap Therapeutics, Inc. was incorporated in 2011 and is based in Cambridge, Massachusetts.

How the Company Makes Money

Leap Therapeutics makes money primarily through the development and commercialization of its proprietary cancer treatment therapies. The company generates revenue through strategic partnerships, licensing agreements, and collaborations with larger pharmaceutical companies, which may involve upfront payments, milestone payments, and royalties on sales of successfully developed products. Leap Therapeutics may also secure funding through public and private investments to support its research and development activities.

Leap Therapeutics Financial Statement Overview

Summary

Leap Therapeutics is facing financial challenges with ongoing losses, negative cash flows, and zero revenue growth. While the low debt levels and stable equity ratio are positives, the lack of revenue and continuous cash burn are major concerns. Strategic changes are necessary for sustainable growth.

Income Statement

Leap Therapeutics has consistently reported zero revenue from 2021 to 2024 following a marginal revenue in 2020. The net income has been negative throughout, indicating persistent losses. EBIT and EBITDA margins are also negative, showcasing an ongoing struggle in generating profits.

Balance Sheet

The company's debt levels are low relative to equity, resulting in a low debt-to-equity ratio, which is a positive indicator. However, the continuous erosion of shareholder equity due to losses is concerning. The equity ratio remains stable, suggesting adequate asset coverage by equity.

Cash Flow

Operating cash flow is consistently negative, reflecting cash burn from operations. Free cash flow has also been negative, though there was a significant financing inflow in 2021. The company has not shown growth in free cash flow, indicating financial strain.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	1.50M	1.50M
Gross Profit	0.00	-427.00K	-415.00K	1.50M	1.50M
EBITDA	-66.97M	-80.99M	-53.98M	-40.01M	-26.81M
Net Income	-67.56M	-81.41M	-54.60M	-40.59M	-27.51M
Balance Sheet
Total Assets	49.12M	72.83M	70.35M	117.91M	54.37M
Cash, Cash Equivalents and Short-Term Investments	47.25M	70.64M	65.50M	114.92M	52.07M
Total Debt	266.00K	262.00K	678.00K	469.00K	552.00K
Total Liabilities	14.08M	12.68M	11.49M	10.02M	7.72M
Stockholders Equity	35.05M	60.14M	58.87M	107.89M	46.65M
Cash Flow
Free Cash Flow	-60.30M	-43.75M	-49.04M	-35.16M	-25.96M
Operating Cash Flow	-60.30M	-43.75M	-49.04M	-35.16M	-25.96M
Investing Cash Flow	0.00	48.97M	0.00	0.00	25.00K
Financing Cash Flow	37.18M	-30.00K	-210.00K	98.03M	74.00M

Leap Therapeutics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPTX, the sentiment is Neutral. The current price of 0.34 is above the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.36, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 72.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LPTX.

Leap Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	46 Neutral	C$197.02M	-3.33	-23.14%	2.65%	20.75%	-0.36%
CARM	46 Neutral	$17.13M	―	-362.79%	―	32.45%	39.31%
SNSE	40 Underperform	$10.02M	―	-64.18%	―	―	1.00%
CTXR	38 Underperform	$18.21M	―	-60.06%	―	―	8.99%
ATHA	36 Underperform	$15.00M	―	-110.70%	―	―	18.61%
MTVA	33 Underperform	$13.08M	―	-339.64%	―	―	-75.88%
LPTX	31 Underperform	$13.87M	―	-202.81%	―	―	64.01%