Leap Therapeutics Stock Plunges To Record Low After Ending Gastric Cancer Drug Trials, Retail Bets On CRC Pipeline

Shares of Leap Therapeutics, Inc. nosedived more than 70% to an all-time low on Tuesday, making them the top loser across U.S. exchanges.

The sharp drop — Leap’s worst intraday fall ever — came after the biotech firm announced it would terminate further development of sirexatamab in gastric cancer trials while shifting its focus to colorectal cancer (CRC).

Leap reported data from the Phase 2 DeFianCe trial, which evaluated sirexatamab in combination with bevacizumab (Avastin) and chemotherapy for CRC. 

The trial showed an objective response rate (ORR) of 35% and a disease control rate (DCR) of 86%, slightly outperforming the control group (ORR: 23%, DCR: 84%). Preparations are now underway for a Phase 3 study targeting second-line CRC patients.

However, results from the DisTinGuish study for gastric and gastroesophageal junction (GEJ) cancers were less promising. 

While sirexatamab combined with tislelizumab (BeiGene’s anti-PD-1 antibody) and chemotherapy showed some activity in biomarker-specific populations, the study failed to generate a clear positive signal on progression-free survival (PFS) endpoints.

Chief Medical Officer Cynthia Sirard cited challenges in radiological assessments and high discordance between investigator assessments and blinded independent central review (BICR) as reasons for the trial’s disappointing outcome.

“Therefore, we have decided to focus our internal effort and resources on advancing sirexatamab in CRC and will explore strategic partnership opportunities to advance sirexatamab plus anti-PD-1 antibodies in gastric cancer and other indications where there is high DKK1 expression,” she said.

Despite the stock’s dramatic plunge, retail chatter on Stocktwits revealed optimism about the CRC pipeline, with several hoping for a potential turnaround as Phase 3 trials progress.

Leap ended the third quarter of 2024 with $62.8 million in cash, which it believes is sufficient to fund operations into the second quarter of 2026.

The stock has lost over 72% in the past 12 months, including a 7.8% year-to-date decline before this session.

For updates and corrections, email newsroom[at]stocktwits[dot]com.