REDWOOD CITY, Calif., Aug. 7 /PRNewswire-FirstCall/ -- Threshold Pharmaceuticals, Inc. , today reported financial results for the quarter ended June 30, 2007.
The net loss for the second quarter of 2007 was $7.6 million compared to $15.5 million for the second quarter of 2006. Research and development expenses were $6.0 million for the second quarter of 2007 versus $13.1 million for the second quarter of 2006. The decrease in research and development expenses reflects the discontinuation of the Company's multi-center clinical trials of TH-070 for the treatment of benign prostatic hyperplasia in July 2006, a decrease in expenses for the Phase 3 glufosfamide clinical trial, the results of which were reported in February 2007, and lower staffing expenses resulting from the August 2006 reduction in staff. These decreases were partially offset by expenses related to the additional Phase 2 glufosfamide clinical trials, and preclinical and other expenses for the TH-302 hypoxia-activated prodrug (HAP) program, for which the Phase 1 clinical trial was recently initiated. General and administrative expenses were $2.5 million for the second quarter of 2007 versus $3.8 million for the second quarter of 2006. This decrease was primarily due to lower employee-related and consulting expenses in 2007 resulting from the August 2006 staff reductions. Revenue of $0.4 million was recognized in each of the quarters ended June 30, 2007 and 2006, related to a pre-existing development agreement. Total non-cash stock compensation expense was $1.6 million for the second quarter of 2007 versus $2.8 million for the second quarter of 2006, and declined due to cancellations of option grants in 2006 resulting from staff reductions and a lower valuation of 2007 option grants.
For the six months ended June 30, 2007, the net loss was $16.7 million, compared to $29.4 million in 2006. Research and development expenses were $13.3 million in the 2007 period compared to $24.5 million in 2006, and declined as a result of the decrease in expenses for the TH-070 and Phase 3 glufosfamide clinical trials, and a decrease in staffing expense. These decreases were partially offset by increased expenses related to the additional Phase 2 glufosfamide clinical trials and preparing for the initiation of the TH-302 Phase 1 clinical trial. General and administrative expenses decreased to $5.1 million in the first half of 2007 from $7.6 million in 2006, primarily due to reduced employee-related and consulting expenses. Threshold recognized revenue of $0.7 million for each of the six months ended June 30, 2007 and 2006, related to a pre-existing development agreement. Total non-cash stock compensation expense for the Company was $3.0 million for the first half of 2007 versus $5.8 million for the first half of 2006.
As of June 30, 2007, Threshold had $34.9 million in cash and investments.
The Company recently announced the initiation of a Phase 1 clinical trial evaluating the safety of TH-302, its hypoxia-activated prodrug (HAP), in patients with solid tumors.
"This year we have started four new clinical trials, including a trial of our hypoxia-activated prodrug, TH-302. We remain focused on advancing our cancer programs while continuing to control our operating expenses," said Barry Selick, Ph.D., Threshold's chief executive officer.
2007 Guidance and Key Milestones
The Company continues to expect 2007 cash requirements to be in the range of $30 to $35 million and that its existing cash and investments will last at least through the middle of 2008.
The Company currently anticipates the following clinical milestones in 2007:
-- Report results from a Phase 2 clinical trial of glufosfamide for first-line treatment of advanced pancreatic cancer in the third quarter; -- Report top-line results from a Phase 1 clinical trial of 2DG for treatment of solid tumors in the second half; and -- Complete enrollment in the ovarian cancer, small-cell lung cancer and soft tissue sarcoma Phase 2 trials.
About Threshold Pharmaceuticals
Threshold is a biotechnology company focused on the discovery and development of therapeutics for the potential treatment of cancer. By selectively targeting abnormally-proliferating tumor cells, the Company's drug candidates are designed to be potentially more effective and less toxic to healthy tissues than conventional treatments. For additional information, please visit our website (http://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, clinical trial progress and results, potential therapeutic uses and benefits of our product candidates and financial results, estimates, projections and requirements. 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 9, 2007 and is available from the SEC's website (http://www.sec.gov) and on our website (http://www.thresholdpharm.com) under the heading "Investors." We undertake no duty to update any forward-looking statement made in this news release.
Contact: Denise T. Powell Sr. Director, Corporate Communications Threshold Pharmaceuticals, Inc. 650-474-8206 dpowell@thresholdpharm.com THRESHOLD PHARMACEUTICALS, INC. (A Development Stage Enterprise) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Revenue $359 $359 $718 $718 Operating expenses Research and development 5,992 13,063 13,334 24,501 General and administrative 2,462 3,763 5,110 7,576 Total Operating Expenses 8,454 16,826 18,444 32,077 Loss from operations (8,095) (16,467) (17,726) (31,359) Interest and other income 498 993 1,109 2,065 Interest expense (41) (53) (80) (59) Net Loss $(7,638) $(15,527) $(16,697) $(29,353) Net loss per common share, basic and diluted $(0.21) $(0.43) $(0.45) $(0.81) Weighted-average shares used in computing basic and diluted loss per common share 36,952 36,178 36,927 36,018 THRESHOLD PHARMACEUTICALS, INC. (A Development Stage Enterprise) CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2007 2006 (unaudited) (1) Assets Cash, cash equivalents and marketable securities $34,867 $52,810 Prepaid expenses and other current assets 896 547 Property and equipment, net 2,645 3,169 Other assets 508 508 Total assets $38,916 $57,034 Liabilities and stockholders' equity Total current liabilities $6,305 $9,659 Long-term liabilities (2), (3) 2,027 3,137 Stockholders' equity 30,584 44,238 Total liabilities and stockholders' equity $38,916 $57,034 (1) Derived from audited financial statements (2) Includes as of June 30, 2007 and December 31, 2006, $0.8 million and $1.2 million, respectively of long-term debt under the Company's loan and security agreement (3) Includes as of June 30, 2007 and December 31, 2006, $0.7 million and $1.4 million, respectively of deferred revenue related to the development agreement with MediBIC Co. Ltd.
Threshold Pharmaceuticals, Inc.CONTACT: Denise T. Powell, Sr. Director, Corporate Communications ofThreshold Pharmaceuticals, Inc., +1-650-474-8206,dpowell@thresholdpharm.com
Web site: http://www.thresholdpharm.com/
