Leap Therapeutics Announces Major Workforce Reduction and Strategic Shift

Leap Therapeutics, a Cambridge, Massachusetts-based biotech company, has announced a significant reduction in its workforce and a strategic shift in its operations. The company plans to cut 75% of its staff over the next two months, following a previous reduction of about half its workforce announced just last month. This drastic measure comes as Leap winds down its research and development activities and explores strategic options for the future.

Workforce Reduction and Executive Departures

The latest round of cuts will be implemented in two phases: the first on or about June 30, and the second on or about July 31. These reductions will include the departure of two C-suite executives. Augustine Lawlor, the company's chief operating officer, will leave during the first phase, while Cyndi Sirard, chief medical officer, will exit in the second phase.

Based on Leap's reported 52 full-time employees as of December 31, 2024, and considering the previous cuts announced in May, the company could be left with fewer than 10 employees once the layoffs are complete. The total cash payments and costs related to these layoffs, including severance payments, are estimated at approximately $3.2 million, with most costs to be recognized in the third quarter.

Financial Position and Market Challenges

Leap Therapeutics cited challenging market conditions as the primary reason for these drastic measures. The company's financial position has been deteriorating, with a reported net loss of $15.4 million in the first quarter of 2025, compared to a $13.8 million deficit during the same period in 2024. The increase in losses was attributed to heightened research and development expenses.

As of May 31, 2025, Leap's cash and cash equivalents totaled about $23.3 million, down from $32.7 million as of March 31. This significant cash burn rate, coupled with the challenging market environment, has forced the company to take decisive action to conserve resources.

Strategic Shift and Clinical Trial Updates

In addition to the workforce reductions, Leap Therapeutics is winding down its research and development activities. The company has decided to conclude its DeFianCe study, a Phase II clinical trial investigating the DKK1 antibody sirexatamab in combination with bevacizumab and chemotherapy for patients with advanced microsatellite stable colorectal cancer.

Despite reporting positive results from Part B of the DeFianCe study, Leap has chosen to wind down the trial due to market conditions. The company is now exploring strategic options that could include a sale or partnership opportunities for sirexatamab, as well as for its anti-GDF-15 antibody FL-501.

These developments mark a significant shift in Leap Therapeutics' strategy, moving away from active research and development towards potentially divesting or partnering its assets. The coming months will likely be crucial in determining the future direction of the company in an increasingly challenging biotech market landscape.