Leap Therapeutics, Inc., a biotechnology company developing selective immuno-oncology medication, and BeiGene, Ltd., a commercial-stage biopharmaceutical company focusing on the development and marketing of novel molecular and immuno-oncology medicines for cancer treatment, today announced an exclusive right and licensing arrangement for clinical development and marketing.
Leap is eligible to receive payments from BeiGene based on certain development, regulatory and sales milestones of up to $132 million,In accordance with tiered royalty on any DKN-01 product sales in the approved region.
“It was our highest strategic goal to partner together to further grow DKN-01 and we are excited to start partnering with BeiGene, a global leader in oncology,” said Christopher K. Mirabelli, Ph.D., President and Chief Executive Officer of Leap Therapeutics.
“BeiGene is the ideal partner for Leap, given its extensive experience in the development of oncology drugs across Asia Pacific, where its expertise and product scope can help us address serious unmet medical needs in esophagogastric, gynecological and other cancers.” Leap has agreed to study the DKN-01 and tislelizumab combination.
In about 20 patients with first-line GC / GEJ, Leap plans to evaluate the combination of DKN-01 with tislelizumab and chemotherapy. In the first half of 2020, Leap plans to launch such clinical trials.
Equity finance In conjunction with the BeiGene licensing agreement, Leap has also entered into a stock purchase agreement to issue and sell 1,421,801 newly designated Series A shares of fully convertible preferred shares to a lead institutional investor and 1,137,442 newly designated Series B shares. Mandatory convertible preferred stock to BeiGene and Perceptive Advisors at a premium of $10.55 per share when the equity funding is completed.
Leap’s aggregate gross proceeds from this offer are approximately $27 million, prior to deduction of investment agent fees and estimated offering expenses payable by Leap, and excluding proceeds from the exercise of warrants.