5 Best Biotech Stocks Under $5

3. Leap Therapeutics, Inc. (NASDAQ:LPTX)

Number of Hedge Fund Holders: 9

Price as of October 14, 2021: $3.32

Leap Therapeutics, Inc. (NASDAQ:LPTX) is a single-asset biotech firm founded in 2011. The single asset therapeutic DKN-01 is an antibody that targets the WNT antagonist DKK1, which is commonly found in cancer. DKK1 is crucial to the growth of carcinogenic cells.

Leap Theurapetics, Inc. (NASDAQ:LPTX) has seen a rise of over 85% on the back of positive results of Phase 2a study for DKN-01 in combination with other therapies and chemotherapy in gastric cancer. This provides potential upside in the future as the research gains momentum further through favorable results.

Mara Goldstein, an analyst at Mizuho Financial Group, seems to be bullish on DKN-01 as she initiated coverage on Leap Therapeutics Inc. (NASDAQ:LPTX) with a Buy rating and a target price of $6.

However, this should be pointed out that Leap has licensed DKN-01 from Eli Lilly and Company (NYSE:LLY), and in case of approval from the FDA, the company would have to pay royalties on potential net sales. Furthermore, the company would have to pay potential royalties to Lonza for licensing its technology.