Leap Therapeutics Shares Jump 56% After Deal With BeiGene
January 03 2020 - 11:12AM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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