Cash Position & Runway (as disclosed in the Q2‑2025 release)
Leap Therapeutics reported that, as of June 30 2025, its cash, cash equivalents and short‑term investments stood at approximately $165 million. The company’s operating cash burn for the quarter was roughly $45 million, driven primarily by R&D spend on its pipeline‑advancing candidates and continued enrollment in multiple Phase 1/2 trials. At that burn‑rate, the existing cash balance gives Leap a runway of roughly 3.5 years (into early 2029) even without any additional financing, though the company has indicated it expects to accelerate spend in the second half of 2025 to advance several key IND filings.
Trading Implications
A multi‑year cash runway markedly reduces near‑term dilution risk, which is a positive signal for shareholders and can support a higher valuation multiple on the company’s forward‑looking pipeline. However, the sizable R&D outlay also means that any setbacks in trial readouts could materially affect the burn profile and prompt the need for supplemental capital. From a technical standpoint, LPTX is currently trading near its 200‑day moving average with modest upside potential if the market prices in the runway cushion; a breakout above the recent resistance at $7.30 would suggest the market is rewarding the strong balance sheet, while a sustained breach below the 50‑day MA (~$6.60) could indicate concerns about execution risk. Actionable take‑away: consider a small‑to‑moderate long position with a stop just below $6.55, while monitoring upcoming data releases (e.g., the Q4‑2025 trial update) that could either reinforce the cash‑runway narrative or trigger a reassessment of capital needs.