Home » Business News » 2012 » September » September 1, 2012

PropThink: Catalyst in Threshold Pharmaceuticals; Interim Trial Data by Year's-End

September 1, 2012 -

Since reporting 2Q earnings on August 2nd, Threshold Pharmaceuticals (NASDAQ:THLD) gained 25% and is on track to end the month around $8.70, a $.50 premium to Friday's opening price. On Wednesday the company announced upcoming presentations at two investor conferences, Stifel Nicolaus and BioCentury NewsMakers, on the 5th and 7th. The announcement helped bolster shares into the end of the week as many investors expect new trial data on TH-302, Threshold's only pipeline product in trials for a myriad of oncology indications. The most recent quarterly report prompted this month's gains, including details about milestone payments from development-partner Merck KGaA (NYSE:MRK) and guiding for data from three clinical trials by the end of 2012. Stifel Nicolaus initiated coverage with a Buy rating on August 24 based on projected royalty revenues from Threshold's cancer compound; the analyst believes Threshold will be profitable in 2017. 
Threshold finished testing TH-302 with Gemzar, from Eli Lilly (NYSE:LLY), in a Phase II clinical trial for pancreatic cancer last year. They reported promising top-line data in February, causing shares to jump more than 100%; the company will report overall data by the end of the year. The company also said it will reveal data from two other Phase I trials in 2012 - for multiple myeloma and renal cell carcinoma/gastrointestinal stromal tumors. With two conferences less than a week away, investors are buying into what they suspect may be a catalyst for THLD and shares are approaching their 52-week high of $9.07.
Management believes it can operate for another year based on current cash and milestone payments, however as with most biotechs, THLD will probably raise capital within a few months to insure operations continue beyond 2013. The company will likely seek financing after trial data becomes public - if positive - as share price will increase. With data presentation pending, THLD is worth keeping an eye on through the end of the year, but this week's gains may have been caused by high-volume trading and could fall off without a catalyst to sustain.
Click here to see this article at
About PropThink
PropThink is an intelligence service that delivers long and short trading ideas to investors in the healthcare and life sciences sectors. Our focus is on identifying and analyzing technically-complicated companies and equities that are grossly over or under-valued. We offer daily market coverage, weekly feature stories, and a newsletter to investors who subscribe on To learn more visit us at

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: PropThink via Thomson Reuters ONE


Copyright 2012 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

ACN Newswire

Comment on this story