LPTX - Leap rebounds as Astellas posts Phase 3 data for rival cancer candidate

Leap Therapeutics ( NASDAQ: LPTX ) shares recovered Thursday after Japan-based Astellas Pharma ( OTCPK:ALPMY ) ( OTCPK:ALPMF ) posted Phase 3 data for its Claudin 18.2 (CLDN18.2) targeted monoclonal antibody, zolbetuximab.

Leap ( LPTX ) shares sold off on Tuesday after announcing an all-stock deal to acquire privately-held Flame Biosciences, which also has a Claudin18.2 monoclonal antibody called FL-301 in Phase 1 clinical development for cancer.

Astellas ( OTCPK:ALPMY ) said that zolbetuximab plus a combination regimen called mFOLFOX6 outperformed placebo plus mFOLFOX6 in certain patients with unresectable or metastatic gastric or gastroesophageal junction ( GEJ ) adenocarcinoma whose cancer indicated the CLDN18.2 protein.

Citing a presentation at the ongoing ASCO Gastrointestinal Cancers Symposium, Astellas ( OTCPK:ALPMY ) noted that zolbetuximab plus mFOLFOX6 cut the risk of cancer progression or death by 24.9% compared to the control arm, meeting the trial's primary endpoint.

The company added that the treatment combo showed a statistically significant improvement in progression-free survival (PFS) and overall survival (OS) compared to placebo plus mFOLFOX6.

The rate of serious treatment-emergent adverse events was 44.8% in those who received zolbetuximab plus mFOLFOX6 compared to 43.5% in the zolbetuximab plus placebo arm.

The Phase 3 SPOTLIGHT trial enrolled 565 patients at 220 study locations in countries including the U.S. and U.K.

Ahead of the readout, Baird defended Leap's ( LPTX ) decision to acquire Flame, noting the upcoming readout for zolbetuximab, which is in the same drug class as FL-301, "could potentially have

read-through for LPTX." The analyst Joel L. Beatty reaffirmed the stock's Outperform rating and $4 per share target.

Leap ( LPTX ) is a favorite among Wall Street analysts, with five Buy ratings and no Sell ratings.

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