By Chris Wack

 

Leap Therapeutics Inc. (LPTX) shares rose 56% to $1.65 after the company said it and BeiGene Ltd. (BGNE) were in an exclusive option and license agreement for the clinical development and commercialization of DKN-01, Leap's anti-Dickkopf-1 antibody, in Asia (excluding Japan), Australia and New Zealand.

Leap said it will retain exclusive rights for the development, manufacturing, and commercialization of DKN-01 for the rest of the world.

The company also said it entered into an agreement for a $27 million equity financing with BeiGene and two institutional investors.

Leap will receive an upfront cash payment of $3 million from BeiGene in exchange for granting BeiGene an option to an exclusive license to develop and commercialize DKN-01 in Asia (excluding Japan), Australia and New Zealand, and will be eligible to receive an additional payment from BeiGene upon BeiGene's exercise of the option following initial proof-of-concept studies.

Leap said it is eligible to receive payments from BeiGene based upon the achievement of certain development, regulatory, and sales milestones for a total deal value of up to $132 million, together with tiered royalties on any product sales of DKN-01 in the licensed territory. BeiGene also will make a $5 million equity investment in Leap as part of the $27 million equity financing.

 

Write to Chris Wack at chris.wack@wsj.com

 

(END) Dow Jones Newswires

January 03, 2020 10:57 ET (15:57 GMT)

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