Leap Therapeutics Inc. (NASDAQ: LPTX) was one of the top gainers in Friday’s trading session. The stock gapped up to close the day with gains of 51.93%. This came after the company announced that, it had entered into an option and license agreement for the development and sale of DKN-01. The deal was done with Chinese biotech company, BeiGene. It also announced that, the two had entered into an agreement for equity financing worth $27 million, alongside two institutional investors.
Under the deal, Leap will get an upfront payment of $3 million from BeiGene. For this amount, BeiGene will have the option to take exclusive rights for the development and sale of DKN-01. The deal covers, Asia, with the exclusion of Japan, New Zealand and Australia. Leap will also be up to receive more payments from BeiGene once it achieves certain development and sales milestones, in a deal that has a total value of around $132 million. On top of that, the company will get royalties on any incremental sales of DKN-01. On its part, BeiGene will invest $5 million equity in Leap as part of a planned $27 million equity financing deal.
Commenting on the deal, Leap Therapeutics CEO, Christopher K. Mirabelli, Ph.D stated that, the deal with BioGene that secured the development of DKN-01 was the company’s key strategic priority. He added that, BioGene was the company’s best partner due to its huge experience in the development of oncology drugs.
On his part, BioGene Chief Medical Officer stated that, the company was excited about the partnership. He added that, the company was excited to bring together its anti-PD-1 inhibitor with DKN-01 adding that, there was a promising signal of biomarkers in patients suffering from gastric cancer.
From a look at its price action, the stock opened with a gap up and traded higher. It traded between $1.32 and $1.95 before closing the day at $1.61. Volumes in the day stood at 16.88 million.
About Leap Therapeutics Inc.
Leap Therapeutics Inc. is a biotech firm that focuses on developing cancer treatments. It is headquartered in Cambridge, Massachusetts.