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.
For the six months ended June 30, 2011, the Company’s operating cash requirements were $12.9 million. The Company currently expects 2011 operating cash requirements to be in the range of $27.0 million to $29.0 million. The Company also expects existing cash, cash equivalents and marketable securities to be sufficient to fund the Company’s projected operating requirements into the third quarter of 2012.
2011 Key Milestones The Company currently anticipates the following key clinical milestones in 2011:- Report top line results from the Phase 1 clinical trial in advanced leukemias in the second half of 2011,
- Report top line efficacy analysis results from the randomized Phase 2 trial in pancreatic cancer at the end of 2011, and
- Initiate a pivotal Phase 3 clinical trial of TH-302 plus doxorubicin compared to doxorubicin alone in patients with metastatic or locally advanced unresectable soft tissue sarcoma in the third quarter of 2011.
| 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, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue | $ | - | $ | - | $ | - | $ | - | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 5,068 | 4,954 | 11,165 | 9,421 | ||||||||||||
| General and administrative | 1,685 | 1,005 | 2,982 | 2,294 | ||||||||||||
| Total Operating Expenses | 6,753 | 5,959 | 14,147 | 11,715 | ||||||||||||
| Loss from operations | (6,753 | ) | (5,959 | ) | (14,147 | ) | (11,715 | ) | ||||||||
| Interest income (expense), net | 12 | 19 | 15 | 39 | ||||||||||||
| Other income (expense) | (1,182 | ) | 5,679 | (2,121 | ) | 5,456 | ||||||||||
| Net Loss | $ | (7,923 | ) | $ | (261 | ) | $ | (16,253 | ) | $ | (6,220 | ) | ||||
| Net loss per common share - basic and diluted | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.38 | ) | $ | (0.19 | ) | ||||
| Weighted-average shares used in computing | ||||||||||||||||
| basic and diluted net loss per common share | 48,805 | 33,638 | 42,659 | 33,621 | ||||||||||||
| THRESHOLD PHARMACEUTICALS, INC. | ||||||
| (A Development Stage Enterprise) | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (in thousands) | ||||||
| June 30, | December 31, | |||||
| 2011 | 2010 | |||||
| (unaudited) | (1) | |||||
| Assets | ||||||
| Cash, cash equivalents and | ||||||
| marketable securities | $ | 31,494 | $ | 14,699 | ||
| Prepaid expenses and other current assets | 1,080 | 944 | ||||
| Property and equipment, net | 128 | 271 | ||||
| Other assets | 290 | 290 | ||||
| Total assets | $ | 32,992 | $ | 16,204 | ||
| Liabilities and stockholders' equity | ||||||
| Total current liabilities | $ | 4,470 | $ | 3,514 | ||
| Long-term liabilities (2) | 15,785 | 7,747 | ||||
| Stockholders' equity | 12,737 | 4,943 | ||||
| Total liabilities and stockholders' equity | $ | 32,992 | $ | 16,204 | ||
| (1) Derived from audited financial statements | ||||||
| (2) Includes as of June 30, 2011 and December 31, 2010, $15.7 million and $7.5 million of warrant liability, respectively | ||||||