Threshold Pharmaceuticals Inc. (THLD, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $40.3 million; its shares were traded at around $2.65 with and P/S ratio of 28.
Research and Development. Research and development expenses were $4.0 million for the three months ended September 30, 2009 compared to $3.7 million for the three months ended September 30, 2008. The $0.3 million increase in expenses is due primarily to an increase in consulting and personnel related expenses. Research and development expenses were $11.7 million for the nine months ended September 30, 2009 compared to $9.9 million for the nine months ended September 30, 2008. The $1.8 million increase in expenses is due primarily to a $1.4 million increase in clinical and development expenses and a $0.8 million increase in consulting and personnel related expenses, offset by a $0.4 million decrease in stock based compensation.
General and administrative expenses were $4.1 million for the nine months ended September 30, 2009, compared to $5.1 million for the nine months ended September 30, 2008. The decrease of $1.0 million is due to $0.5 million of decrease in stock-based compensation expenses and $0.5 million in lower consulting expenses and staffing and facilities expenses.
Interest and Other Expense. Interest and other expense was $1.0 million and $3.2 million, for the three and nine months ended September 30, 2009, respectively, compared to $13,000 and $0.1 million for the three and nine months ended September 30, 2008, respectively. The increase was primarily due to the $1.0 million and $3.0 million non cash charge for the three and nine months ended September 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 new guidance codified in ASC 815, Derivatives and Hedging as of January 1, 2009. In accordance with ASC 815, 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 $203.1 million since inception through September 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 our common stock for a purchase price equal to $2.04 per share and warrants exercisable for a total of 3,588,221 shares of our common stock with an exercise price equal to $2.34 per share, which exercise price was subsequently reduced to $1.86 per share on October 5, 2009 under the anti-dilution provisions of the warrants as a result of the private placement that was completed on that date and discussed below. 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 $8.5 million and $22.3 million at September 30, 2009 and December 31, 2008, respectively, available to fund operations.
On October 5, 2009, we sold to certain investors an aggregate of 18,324,599 shares of our common stock for a purchase price equal to $1.86 per share and, for a purchase price equal to $0.05 per share, warrants exercisable for a total of 7,329,819 shares of our common stock for aggregate gross proceeds equal to $35.0 million in connection with the offering. Net proceeds generated from the offering are expected to be approximately $33.1 million. The warrants have a five-year term and an exercise price equal to $2.23 per share of common stock. The exercise price of the warrants may be adjusted in certain circumstances, including certain issuances of securities at a price equal to less than the then current exercise price. In addition, the number of shares issuable upon exercise of the warrants and the exercise price are subject to adjustment for subdivisions and stock splits, stock dividends, combinations, reorganizations, reclassifications, consolidations, mergers or sales of properties and assets and upon the issuance of certain assets or securities to holders of our common stock, as applicable.
Read the The complete Report
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 $40.3 million; its shares were traded at around $2.65 with and P/S ratio of 28.
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 September 30, 2009 we had cash, cash equivalents and marketable securities of $8.5 million. Our net loss for the nine months ended September 30, 2009 was $18.9 million and our cumulative net loss since our inception through September 30, 2009 was $203.1 million. In October 2009, we completed an offering of common stock and warrants that raised aggregate gross proceeds of $35.0 million and net proceeds are expected to be approximately $33.1million.Research and Development. Research and development expenses were $4.0 million for the three months ended September 30, 2009 compared to $3.7 million for the three months ended September 30, 2008. The $0.3 million increase in expenses is due primarily to an increase in consulting and personnel related expenses. Research and development expenses were $11.7 million for the nine months ended September 30, 2009 compared to $9.9 million for the nine months ended September 30, 2008. The $1.8 million increase in expenses is due primarily to a $1.4 million increase in clinical and development expenses and a $0.8 million increase in consulting and personnel related expenses, offset by a $0.4 million decrease in stock based compensation.
General and administrative expenses were $4.1 million for the nine months ended September 30, 2009, compared to $5.1 million for the nine months ended September 30, 2008. The decrease of $1.0 million is due to $0.5 million of decrease in stock-based compensation expenses and $0.5 million in lower consulting expenses and staffing and facilities expenses.
Interest and Other Expense. Interest and other expense was $1.0 million and $3.2 million, for the three and nine months ended September 30, 2009, respectively, compared to $13,000 and $0.1 million for the three and nine months ended September 30, 2008, respectively. The increase was primarily due to the $1.0 million and $3.0 million non cash charge for the three and nine months ended September 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 new guidance codified in ASC 815, Derivatives and Hedging as of January 1, 2009. In accordance with ASC 815, 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 $203.1 million since inception through September 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 our common stock for a purchase price equal to $2.04 per share and warrants exercisable for a total of 3,588,221 shares of our common stock with an exercise price equal to $2.34 per share, which exercise price was subsequently reduced to $1.86 per share on October 5, 2009 under the anti-dilution provisions of the warrants as a result of the private placement that was completed on that date and discussed below. 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 $8.5 million and $22.3 million at September 30, 2009 and December 31, 2008, respectively, available to fund operations.
On October 5, 2009, we sold to certain investors an aggregate of 18,324,599 shares of our common stock for a purchase price equal to $1.86 per share and, for a purchase price equal to $0.05 per share, warrants exercisable for a total of 7,329,819 shares of our common stock for aggregate gross proceeds equal to $35.0 million in connection with the offering. Net proceeds generated from the offering are expected to be approximately $33.1 million. The warrants have a five-year term and an exercise price equal to $2.23 per share of common stock. The exercise price of the warrants may be adjusted in certain circumstances, including certain issuances of securities at a price equal to less than the then current exercise price. In addition, the number of shares issuable upon exercise of the warrants and the exercise price are subject to adjustment for subdivisions and stock splits, stock dividends, combinations, reorganizations, reclassifications, consolidations, mergers or sales of properties and assets and upon the issuance of certain assets or securities to holders of our common stock, as applicable.
Read the The complete Report
