Company Profile:

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.

Recent News:

The company presented positive new data from the DisTinGuish Study of DKN-01 plus BeiGene’s anti-PD-1 antibody tislelizumab and chemotherapy in gastroesophageal junction/gastric (GEJ/G) cancer patients at the 2022 American Society of Clinical Oncology (ASCO) Gastrointestinal (GI) Cancers Symposium.

The company reported net Loss was $10.4 million for the first quarter 2022, compared to $9.1 million for the same period in 2021. The increase was primarily due to an increase in clinical trial costs due to the timing of patient enrollment and the duration of patients on study in the DisTinGuish trial and an increase in the number of research and development employees to support the development of DKN-01. Research and development expenses were $7.8 million for the first quarter 2022, compared to $6.8 million for the same period in 2021. Cash and cash equivalents totaled $103.2 million at March 31, 2022.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

@@@@@

Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

@@@@@

Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

@@@@@

Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

@@@@@

Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

@@@@@

Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

@@@@@

Conclusion:

LPTX receives outperform rating in price to bookvalue and discounted cash flow. Technical indicators signal the bullish signs, as there is a bullish crossover in the MACD and the Stochastic oscillator. The RSI stands at 46.2 with positive bias. We rate Leap Therapeutics, Inc. (LPTX) a BUY.