Biotech Implosion: Threshold Pharmaceuticals' Trial Fails on Pancreatic Cancer (THLD)

Biotech Implosion: Threshold Pharmaceuticals (THLD)

Threshold Pharmaceuticals, Inc. (THLD-NASDAQ) came clean after the close and announced that a Phase 3 trial of glufosfamide did not show a statistically significant improvement in overall survival in metastatic pancreatic cancer patients compared to best supportive care who had relapsed after gemcitabine chemotherapy.  While the overall survival in patients in the glufosfamide arm was 18% higher compared to those who received best supportive care alone, the result was not statistically significant.

The company will continue to develop 2-deoxyglucose as well as our pre-clinical candidate HAP-302.  The Company also continues to expect its cash to last at least through the middle of 2008.  So, now we know THLD’s real threshold.  Ouch.  This is sad that this disease is still so pervasive and that the survival rates are so low, and now a cure doesn’t seem any closer.

THLD is trading down more than 50% at $1.55 in after-hours trading; its 52-week high is $16.98.

Jon C. Ogg
February 26, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.