Threshold Pharmaceuticals Inc. (THLD, Financial) filed Quarterly Report for the period ended 2009-06-30.
Threshold is focused on the discovery development and commercialization of small molecule therapeutics based on `Metabolic Targeting.` This approach targets abnormal glucose metabolism - a fundamental property of most solid tumors and other diseases. The company\'s initial focus is the treatment of cancer and benign prostatic hyperplasia a disease characterized by overgrowth of the prostate. Threshold Pharmaceuticals Inc. has a market cap of $22.4 million; its shares were traded at around $1.47 with and P/S ratio of 15.5.
Research and Development. Research and development expenses were $4.2 million for the three months ended June 30, 2009 compared to $3.0 million for the three months ended June 30, 2008. The $1.2 million increase in expenses is due primarily to a $1.0 million increase in clinical and development expenses and a $0.2 million increase in consulting and personnel related expenses. Research and development expenses were $7.7 million for the six months ended June 30, 2009 compared to $6.2 million for the six months ended June 30, 2008. The $1.5 million increase in expenses is due primarily to a $1.3 million increase in clinical and development expenses and a $0.2 million increase in consulting and personnel related expenses.
Research and development expenses associated with 2DG were $0.1 million for the three months ended June 30, 2009 and $0.1 million for the three months ended June 30, 2008, and were $0.1 million for the six months ended June 30, 2009 and $0.2 million for the six months ended June 30, 2008, as we completed enrollment of the 2DG Phase 1 trial in the second quarter of 2008, and announced results in third quarter of 2008. We are not currently planning or conducting further additional clinical trials of 2DG. Discovery research and development expenses were $1.1 million for the three months ended June 30, 2009 compared to $1.1 million for the three months ended June 30, 2008, and were $2.3 million for the six months ended June 30, 2009 compared to $2.1 million for the six months ended June 30, 2008 as we continue to focus our efforts towards discovering and developing new drug candidates from our hypoxia activated prodrug platform.
General and administrative expenses were $2.9 million for the six months ended June 30, 2009, compared to $3.7 million for the six months ended June 30, 2008. The decrease of $0.8 million is due to $0.4 million of decrease in stock-based compensation expenses and $0.4 million in lower consulting expenses and staffing and facilities expenses.
Interest and Other Expense. Interest and other expense was $0.8 million and $2.2 million, for the three and six months ended June 30, 2009, respectively, compared to $18,000 and $39,000, for the three and six months ended June 30, 2008, respectively. The increase was primarily due to the $0.7 million and $2.1 million non cash charge for the three and six months ended June 30, 2009, respectively, related to the change in fair value of the common stock warrants recorded in interest and other expense as a result of our adoption of EITF Issue No. 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entitys Own Stock (EITF 07-5) as of January 1, 2009. In accordance with EITF 07-5, stock warrants with certain terms that were previously accounted for as equity must now be accounted for as a liability with changes to their fair value recognized in the consolidated statement of operations.
We have incurred net losses of $196.9 million since inception through June 30, 2009. We have not generated and do not expect to generate revenue from sales of product candidates in the near term. From inception until our initial public offering in February 2005, we funded our operations primarily through private placements of our preferred stock. In February 2005, we completed our initial public offering of 1,018,768 shares of common stock, raising net proceeds of $38.1 million. In October 2005, we completed a public offering of 1,066,537 shares of our common stock for net proceeds of $62.4 million. On August 29, 2008, we sold to certain investors an aggregate of 8,970,574 shares of its common stock for a purchase price equal to $2.04 per share and warrants exercisable for a total of 3,588,221 shares of its common stock with an exercise price equal to $2.34 per share (subject to adjustment). Net proceeds generated from the offering were $16.8 million. In August 2008, our Board of Directors approved a 1-for-6 reverse split of its common stock, effective August 20, 2008. Accordingly, all references to common shares of stock have been retroactively adjusted to reflect the reverse split. We had cash, cash equivalents and marketable securities of $12.8 million and $22.3 million at June 30, 2009 and December 31, 2008, respectively, available to fund operations.
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Threshold is focused on the discovery development and commercialization of small molecule therapeutics based on `Metabolic Targeting.` This approach targets abnormal glucose metabolism - a fundamental property of most solid tumors and other diseases. The company\'s initial focus is the treatment of cancer and benign prostatic hyperplasia a disease characterized by overgrowth of the prostate. Threshold Pharmaceuticals Inc. has a market cap of $22.4 million; its shares were traded at around $1.47 with and P/S ratio of 15.5.
Highlight of Business Operations:
We are a development stage company incorporated in October 2001. We have devoted substantially all of our resources to research and development of our product candidates. We have not generated any revenue from the sale of our product candidates, and prior to our initial public offering in February 2005, we funded our operations through the private placement of equity securities. In February 2005, we completed our initial public offering that raised net proceeds of $38.1 million, and in October 2005, we completed an offering of common stock that raised net proceeds of $62.4 million. In August 2008, we completed an offering of common stock and warrants that raised net proceeds of $16.8 million. As of June 30, 2009 we had cash, cash equivalents and marketable securities of $12.8 million. Our net loss for the six months ended June 30, 2009 was $12.8 million and our cumulative net loss since our inception through June 30, 2009 was $196.9 million.Research and Development. Research and development expenses were $4.2 million for the three months ended June 30, 2009 compared to $3.0 million for the three months ended June 30, 2008. The $1.2 million increase in expenses is due primarily to a $1.0 million increase in clinical and development expenses and a $0.2 million increase in consulting and personnel related expenses. Research and development expenses were $7.7 million for the six months ended June 30, 2009 compared to $6.2 million for the six months ended June 30, 2008. The $1.5 million increase in expenses is due primarily to a $1.3 million increase in clinical and development expenses and a $0.2 million increase in consulting and personnel related expenses.
Research and development expenses associated with 2DG were $0.1 million for the three months ended June 30, 2009 and $0.1 million for the three months ended June 30, 2008, and were $0.1 million for the six months ended June 30, 2009 and $0.2 million for the six months ended June 30, 2008, as we completed enrollment of the 2DG Phase 1 trial in the second quarter of 2008, and announced results in third quarter of 2008. We are not currently planning or conducting further additional clinical trials of 2DG. Discovery research and development expenses were $1.1 million for the three months ended June 30, 2009 compared to $1.1 million for the three months ended June 30, 2008, and were $2.3 million for the six months ended June 30, 2009 compared to $2.1 million for the six months ended June 30, 2008 as we continue to focus our efforts towards discovering and developing new drug candidates from our hypoxia activated prodrug platform.
General and administrative expenses were $2.9 million for the six months ended June 30, 2009, compared to $3.7 million for the six months ended June 30, 2008. The decrease of $0.8 million is due to $0.4 million of decrease in stock-based compensation expenses and $0.4 million in lower consulting expenses and staffing and facilities expenses.
Interest and Other Expense. Interest and other expense was $0.8 million and $2.2 million, for the three and six months ended June 30, 2009, respectively, compared to $18,000 and $39,000, for the three and six months ended June 30, 2008, respectively. The increase was primarily due to the $0.7 million and $2.1 million non cash charge for the three and six months ended June 30, 2009, respectively, related to the change in fair value of the common stock warrants recorded in interest and other expense as a result of our adoption of EITF Issue No. 07-5, Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entitys Own Stock (EITF 07-5) as of January 1, 2009. In accordance with EITF 07-5, stock warrants with certain terms that were previously accounted for as equity must now be accounted for as a liability with changes to their fair value recognized in the consolidated statement of operations.
We have incurred net losses of $196.9 million since inception through June 30, 2009. We have not generated and do not expect to generate revenue from sales of product candidates in the near term. From inception until our initial public offering in February 2005, we funded our operations primarily through private placements of our preferred stock. In February 2005, we completed our initial public offering of 1,018,768 shares of common stock, raising net proceeds of $38.1 million. In October 2005, we completed a public offering of 1,066,537 shares of our common stock for net proceeds of $62.4 million. On August 29, 2008, we sold to certain investors an aggregate of 8,970,574 shares of its common stock for a purchase price equal to $2.04 per share and warrants exercisable for a total of 3,588,221 shares of its common stock with an exercise price equal to $2.34 per share (subject to adjustment). Net proceeds generated from the offering were $16.8 million. In August 2008, our Board of Directors approved a 1-for-6 reverse split of its common stock, effective August 20, 2008. Accordingly, all references to common shares of stock have been retroactively adjusted to reflect the reverse split. We had cash, cash equivalents and marketable securities of $12.8 million and $22.3 million at June 30, 2009 and December 31, 2008, respectively, available to fund operations.
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