REDWOOD CITY, Calif., May 7, 2010 (GLOBE NEWSWIRE) -- Threshold Pharmaceuticals, Inc. (Nasdaq:THLD), today reported financial results for the first quarter ended March 31, 2010.
The net loss for the first quarter of 2010 was $6.0 million compared to $6.5 million for the first quarter of 2009. Research and development expenses were $4.5 million for the first quarter of 2010 compared to $3.5 million for the first quarter of 2009. The increase in research and development expenses primarily reflects an increase in clinical trial expenses related to TH-302. General and administrative expenses were $1.3 million for the first quarter of 2010 versus $1.7 million for the first quarter of 2009. This decrease was primarily due to lower employee stock-based compensation. Total non-cash stock compensation expense for the Company was $40,000 for the first quarter of 2010 versus $0.6 million for the first quarter of 2009. The decrease in stock-based compensation expense is due to the amortization of fewer options with lower valuations. Interest expense for the first quarter of 2010 was $0.2 million versus $1.4 million for the first quarter for 2009. This decrease was due to a lower non-cash charge related to the revaluation of the Company's outstanding warrants to purchase 10.9 million shares of common stock in the first quarter of 2010 compared to the first quarter of 2009.
As of March 31, 2010, Threshold had $31.9 million in cash, cash equivalents and marketable securities. The Company currently expects 2010 cash requirements to be in the range of $23 to $25 million. The Company expects existing cash, cash equivalents and marketable securities to last through the second quarter of 2011.
Recent Highlights
- Presented interim Phase 2 data in patients with gastrointestinal (GI) cancer at ASCO GI Cancers Symposium
- Presented preclinical data at AACR highlighting mechanism of action and anti-tumor activity of TH-302
- Hired Eric Malek as Vice President of Corporate Development
2010 Key Milestones
The Company currently anticipates the following clinical milestones in 2010:
- Present updated top-line results from ongoing TH-302 clinical trials at ASCO
- Initiate at least one randomized controlled clinical trial with TH-302 in mid-year 2010
About Threshold Pharmaceuticals
Threshold is a biotechnology company focused on the discovery and development of drugs targeting the tumor microenvironment. This approach offers broad potential to treat most solid tumors. By selectively targeting tumor cells, we are building a pipeline of drugs that hold promise to be more effective and less toxic to healthy tissues than conventional anticancer drugs. For additional information, please visit our website (www.thresholdpharm.com).
Forward-Looking Statements
Except for statements of historical fact, the statements in this press release are forward-looking statements, including statements regarding Threshold's product candidates and approach to developing new product candidates, pre-clinical testing of TH-302, clinical trials and anticipated results and announcements, potential therapeutic uses and benefits of TH-302 and financial results, estimates, projections and requirements, including the need for additional cash. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Threshold's ability to attract and retain employees, commence, enroll or complete its anticipated clinical trials, the time and expense required to conduct such clinical trials and analyze data, issues arising in the regulatory or manufacturing process and the results of such clinical trials (including product safety issues and efficacy results). Further information regarding these and other risks is included under the heading "Risk Factors" in Threshold's Quarterly Report on Form 10-Q, which was filed with the Securities Exchange Commission on May 6, 2010 and is available from the SEC's website (www.sec.gov) and on our website under the heading "Investors". We undertake no duty to update any forward-looking statement made in this news release.
| THRESHOLD PHARMACEUTICALS, INC. | ||
| (A Development Stage Enterprise) | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (in thousands, except per share amounts) | ||
| (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2010 | 2009 | |
| Revenue | $ — | $ — |
| Operating expenses | ||
| Research and development | 4,467 | 3,499 |
| General and administrative | 1,289 | 1,672 |
| Total Operating Expenses | 5,756 | 5,171 |
| Loss from operations | (5,756) | (5,171) |
| Interest and other income | 20 | 39 |
| Interest and other expense | (223) | (1,411) |
| Net Loss | (5,959) | (6,543) |
| Net loss per common share-basic and diluted | $ (0.18) | $ (0.43) |
|
Weighted-average shares used in computing basic and diluted net loss per common share |
33,603 | 15,218 |
| THRESHOLD PHARMACEUTICALS, INC. | ||||
| (A Development Stage Enterprise) | ||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
| (in thousands) | ||||
| March 31, | December 31, | |||
| 2010 | 2009 | |||
| (unaudited) | (1) | |||
| Assets | ||||
|
Cash, cash equivalents and marketable securities |
$ 31,904 | $ 37,315 | ||
| Prepaid expenses and other current assets (2) | 10,528 | 10,342 | ||
| Property and equipment, net | 473 | 505 | ||
| Other assets | 511 | 523 | ||
| Total assets | $ 43,416 | $ 48,685 | ||
| Liabilities and stockholders' equity | ||||
| Total current liabilities(2) | $ 13,241 | $ 12,874 | ||
| Long-term liabilities (3) | 13,345 | 13,154 | ||
| Stockholders' equity | 16,830 | 22,657 | ||
| Total liabilities and stockholders' equity | $ 43,416 | $ 48,685 | ||
| (1) Derived from audited financial statements | ||||
| (2) Includes as of March 31, 2010 and December 31, 2009, $10 million of settlement costs to be paid to the plaintiffs of an outstanding class action lawsuit by the Company's insurers. | ||||
| (3) Includes as of March 31, 2010 and December 31, 2009, $12.9 million and $12.7 million of warrant liability, respectively, as a result of the Company's adoption on January 1, 2009 of guidance now codified under ASC Topic 815, "Derivatives and Hedging" | ||||