BioTuesdays

HCW cuts Leap Therapeutics PT to $3.25 from $7.50

H.C. Wainwright lowered its price target for Leap Therapeutics (NASDAQ:LPTX) to $3.25 from $7.50 after the company decided to re-allocate resources and focus on advancing DKN-01, its anti-Dickkopf-1 antibody, while placing the TRX518 program on hold. The stock fell 52 cents to close at 63 cents in heavier than normal trading on Nov. 14.

“The decision, we believe, was made partially to focus all resources on the most advanced program and partially to conserve the funds currently available to complete all ongoing studies in the DKN-01 program,” writes analyst Swayampakula Ramakanth.

To date, DKN-01 has demonstrated meaningful clinical benefits in multiple tumor types, including gastroesophageal junction and gastric cancer, and epithelial endometrial cancer, he added.

“We believe these promising results have identified potential target patient populations who could benefit from DKN-01,” Mr. Ramakanth said. “As a result, we believe the clinical development and regulatory pathway for DKN-01 program is better defined, compared with TRX518.”

He also pointed out that Leap could be seeking a potential suitor to divest TRX518 and a development partner for late-stage development of DKN-01.

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