REDWOOD CITY, Calif., Nov. 7 /PRNewswire-FirstCall/ -- Threshold Pharmaceuticals, Inc. , today reported financial results for the third quarter ended September 30, 2007. Net loss for the third quarter of 2007 was $6.6 million compared to $16.7 million for the third quarter of 2006.
"We remain focused on the development of our hypoxia-activated prodrug platform for the treatment of solid tumors and our ongoing development of glufosfamide," said Barry Selick, Threshold's chief executive officer.
Research and development expenses were $4.9 million for the third quarter of 2007 versus $14.0 million for the third 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 as part of the completion of the Phase 3 glufosfamide clinical trial, the results of which were reported in February 2007, and lower staffing expenses resulting from reductions in staff. These decreases were partially offset by expenses related to the additional Phase 2 glufosfamide clinical trials, and development expenses for the TH-302 hypoxia-activated prodrug (HAP) program. Research and development expenses in the third quarter of 2006 reflected $0.6 million in severance benefits related to the corporate realignment that was announced in August 2006.
General and administrative expenses were $2.4 million for the third quarter of 2007 versus $3.9 million for the same quarter last year. This decrease was primarily due to lower employee-related and consulting expenses in 2007 resulting from the August 2006 staff reductions.
Total non-cash stock compensation expense for the Company was $1.5 million for the third quarter of 2007 versus $2.6 million for the third quarter of 2006. The Company recognized revenue of $0.4 million in the third quarter of 2007 and 2006, respectively, related to an upfront payment pursuant to a pre-existing development agreement.
For the nine months ended September 30, 2007, the net loss was $23.3 million, compared to $46.1 million in 2006. Research and development expenses were $18.2 million in the 2007 period compared to $38.5 million in 2006, and declined as a result of the decrease in expenses for the TH-070 and 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 the initiation of the TH-302 Phase 1 clinical trial. General and administrative expenses decreased to $7.5 million in the first nine months of 2007 from $11.5 million in 2006, primarily due to reduced employee-related and consulting expenses. Threshold recognized revenue of $1.1 million for each of the nine months ended September 30, 2007 and 2006, related to a pre-existing development agreement. Total non-cash stock compensation expense for the Company was $4.5 million for the first nine months of 2007 versus $8.3 million for the first nine months of 2006.
Guidance and Key Milestones
The Company now expects its existing cash and investments to be sufficient to fund projected activities through the first quarter of 2009. The Company continues to expect 2007 cash requirements to be in the range of $30 to $35 million.
In the fourth quarter of 2007, the Company anticipates completing enrollment and reporting results in the soft tissue sarcoma Phase 2 trial as well as analyzing preliminary efficacy data in the ovarian cancer Phase 2 trial. Also in 2007 the company plans to complete enrollment in the Phase 1 clinical trial of 2DG for the treatment of solid tumors and expects top-line results during the first half of 2008.
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 August 7, 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.
dpowell@thresholdpharm.com
CONTACT: Denise T. Powell, Sr. Director, Corporate Communications of
Threshold Pharmaceuticals, Inc., +1-650-474-8206,
dpowell@thresholdpharm.com
Web site: http://www.thresholdpharm.com/
