Threshold Pharmaceuticals Says to Cut 25% of Jobs
REDWOOD CITY, Calif., Oct. 29 -- Threshold Pharmaceuticals, Inc. , today announced a corporate realignment to reduce expenses and focus its activities on its hypoxia-activated prodrug (HAP) program and the currently ongoing clinical trials of glufosfamide.
The Company is committed to reducing cash burn and refocusing its research and development efforts. The Company is taking the following actions:
In connection with these actions, Threshold expects to pay severance benefits of approximately $1.2 million in the fourth quarter of 2007. The Company continues to expect cash used for operations to be in the range of $30 to $35 million in 2007. The Company currently expects cash and investments to be sufficient to fund projected activities at least through the first quarter of 2009. As of June 30, 2007, Threshold had $34.9 million in cash and investments.
"This is just one of several steps that Threshold is taking to bring greater focus to our HAP program that we believe holds great promise for the treatment of solid tumors," said Barry Selick, Threshold's chief executive officer. "Dr. John Curd's recent appointment as president and CMO, this realignment, and an aggressive partnering effort for glufosfamide will enable us to redirect our resources in a way to optimize the chances of successfully developing not only TH-302 but follow-on compounds from this program as well."
"Kevin Kaster is one of the most talented strategists and Intellectual Property attorneys I have had the pleasure of working with -- his counsel and dedication to Threshold has been invaluable since joining the Company in 2002 and I look forward to his ongoing contributions to the Company as a consultant," said Barry Selick, Threshold's chief executive officer. "Cathy Davis' superb financial and leadership skills were critical to Threshold over the last two years -- she has been a wonderful colleague and a highly valued member of our management team. I wish both Kevin and Cathy great success in their future endeavors."
Focused Development Efforts
The Company's research and development efforts will be primarily focused on:
The Company will also continue to evaluate in-licensing opportunities to potentially add to its existing pipeline.
About Threshold Pharmaceuticals
Threshold is a biotechnology company focused on the discovery and development of small molecule therapeutics for the potential treatment of cancer. By selectively targeting abnormally-proliferating tumor cells, the Company's drug candidates are designed to be potentially more effective and less toxic to healthy tissues than conventional treatments. For additional information, please visit our website (http://www.thresholdpharm.com).
Except for statements of historical fact, the statements in this press release are forward-looking statements, including statements regarding Threshold's product candidates, clinical trial progress and results, potential therapeutic uses and benefits of our product candidates and financial results, estimates and projections. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Threshold's ability to commence, enroll or complete its anticipated clinical trials and analyze data, issues arising in the regulatory process and the results, the time and expense required to conduct such clinical trials, the results of such clinical trials (including product safety issues and efficacy results), the ability to achieve the intended benefits of the expense reductions and refocusing efforts, and the ability to in-license other compounds or programs. Further information regarding these and other risks is included under the heading "Risk Factors" in Threshold's Quarterly Report on Form 10-Q, which was filed with the Securities Exchange Commission on August 7, 2007 and is available from the SEC's website (http://www.sec.gov) and on our website (http://www.thresholdpharm.com) under the heading "Investors." We undertake no duty to update any forward-looking statement made in this news release.