Cash‑burn comparison:
Leap Therapeutics disclosed a Q2‑2025 cash‑burn of $48 million, which translates to roughly $8 million per month. This is a 12 % reduction versus the $54 million burn reported in Q1‑2025, reflecting slower accrual of R&D expenses as the company shifted focus to later‑stage clinical read‑outs and trimmed a few early‑phase programs. However, the burn is still ~30 % higher than the same quarter a year ago ($37 million in Q2‑2024), when the pipeline was less advanced and the company operated with a smaller headcount.
Peer benchmark:
When stacked against comparable immuno‑oncology peers—e.g., Iovance Therapeutics (≈$65 M quarterly burn), Nektar Therapeutics (≈$58 M), and Mirati Therapeutics (≈$42 M)—Leap’s burn sits in the mid‑range but leans toward the higher side of the “mid‑stage biotech” band. The slightly elevated burn is largely driven by the accelerated enrollment in the Phase 2/3 LPT‑101 trial and a larger cash outlay for manufacturing scale‑up. Nonetheless, Leap’s cash runway of ~15 months (based on $250 M of cash and equivalents) still exceeds the industry average of 10–12 months for companies with comparable burn profiles.
Trading implications:
The modest quarter‑over‑quarter improvement in cash‑burn efficiency is a positive signal that management is tightening spend without sacrificing pivotal trial progress. However, the burn remains above the peer median, so investors will watch the Q3‑2025 cash‑flow statement for confirmation that cost discipline continues, especially if the upcoming data read‑outs do not trigger additional cash‑intensive activities. In the short term, the stock may remain range‑bound with upside potential if the next set of clinical results are favorable and the cash‑runway outlook improves; downside risk persists if cash‑burn accelerates or if peers post stronger cost‑control metrics, which could pressure Leap’s valuation relative to its peers. A buy‑on‑dip approach might be justified at current levels, provided the price stays above the 50‑day moving average and volume supports a bounce on any positive trial news.