Threshold Pharmaceuticals Reports Second Quarter 2011 Financial And Operational Results

Threshold Pharmaceuticals, Inc. (Nasdaq:THLD), today reported financial results for the second quarter ended June 30, 2011. The net loss for the second quarter and six months ended June 30, 2011 was $7.9 million and $16.3 million, respectively. As of June 30, 2011, Threshold had $31.5 million in cash, cash equivalents and marketable securities, with no debt outstanding.

The net loss for the second quarter of 2011 was $7.9 million compared to $0.3 million for the second quarter of 2010. Included in the net loss, for second quarter of 2011 was non-cash expense of $1.2 million compared to non-cash income of $5.7 million in the second quarter of 2010. The non-cash income (expense) was related to the changes in fair value of the Company’s outstanding warrants and was classified as other income (expense). Research and development expenses were $5.1 million for the second quarter of 2011 compared to $5.0 million for the second quarter of 2010. The increase in research and development expenses primarily reflects an increase in clinical trial expenses related to TH-302. General and administrative expenses were $1.7 million for the second quarter of 2011 versus $1.0 million for the second quarter of 2010. The increase in general and administrative expenses was primarily due to an increase in consulting, facilities and personnel related expenses. Non-cash stock compensation expense for the Company was $0.2 million for the second quarter of 2011 versus $0.2 million for the second quarter of 2010.

For the six months ended June 30, 2011, the net loss was $16.3 million, compared to $6.2 million for the six months ended June 30, 2010. Included in the net loss, for the six months ended June 30, 2011 was non-cash expense of $2.1 million compared to non-cash income of $5.5 million for the six months ended June 30, 2010. The non-cash income (expense) was related to the changes in fair value of the Company’s outstanding warrants and was classified as other income (expense). Research and development expenses were $11.2 million in the first half of 2011 compared to $9.4 million in the first half of 2010, and increased primarily due to clinical trial expenses related to TH-302. General and administrative expenses increased to $3.0 million in the first half of 2011 from $2.3 million in the first half of 2010, primarily due to an increase in consulting, facilities and personnel related expenses. Total non-cash stock compensation expense for the Company was $0.5 million for the first half of 2011 versus $0.3 million for the first half of 2010. This increase was primarily due to the amortization of an increased number of options.