Threshold Pharmaceuticals reports $6.0M net loss for first-quarter 2010

Threshold Pharmaceuticals, Inc. (Nasdaq:THLD), today reported financial results for the first quarter ended March 31, 2010.

The net loss for the first quarter of 2010 was $6.0 million compared to $6.5 million for the first quarter of 2009. Research and development expenses were $4.5 million for the first quarter of 2010 compared to $3.5 million for the first quarter of 2009. The increase in research and development expenses primarily reflects an increase in clinical trial expenses related to TH-302. General and administrative expenses were $1.3 million for the first quarter of 2010 versus $1.7 million for the first quarter of 2009. This decrease was primarily due to lower employee stock-based compensation. Total non-cash stock compensation expense for the Company was $40,000 for the first quarter of 2010 versus $0.6 million for the first quarter of 2009. The decrease in stock-based compensation expense is due to the amortization of fewer options with lower valuations. Interest expense for the first quarter of 2010 was $0.2 million versus $1.4 million for the first quarter for 2009. This decrease was due to a lower non-cash charge related to the revaluation of the Company's outstanding warrants to purchase 10.9 million shares of common stock in the first quarter of 2010 compared to the first quarter of 2009.

As of March 31, 2010, Threshold had $31.9 million in cash, cash equivalents and marketable securities. The Company currently expects 2010 cash requirements to be in the range of $23 to $25 million. The Company expects existing cash, cash equivalents and marketable securities to last through the second quarter of 2011.

Recent Highlights

• Presented interim Phase 2 data in patients with gastrointestinal (GI) cancer at ASCO GI Cancers Symposium
• Presented preclinical data at AACR highlighting mechanism of action and anti-tumor activity of TH-302
• Hired Eric Malek as Vice President of Corporate Development

2010 Key Milestones

The Company currently anticipates the following clinical milestones in 2010:

• Present updated top-line results from ongoing TH-302 clinical trials at ASCO
• Initiate at least one randomized controlled clinical trial with TH-302 in mid-year 2010