It’s Time to Pay Attention to Threshold Pharmaceuticals
With all of the recent activity in biotechnology stocks, it can be easy to forget about a small-cap stock that hasn’t released as much news as some its peers. However, that should change over the next 12-18 months. Threshold Pharmaceuticals (NASDAQ:THLD) is a research-driven biotechnology company dedicated to the discovery and development of tumor-targeted therapies to improve the lives of patients with cancer.
Threshold Pharmaceuticals has been concentrating on the development of TH-302, a therapy under evaluation for the treatment of soft tissue sarcoma, pancreatic cancer, and other solid tumors. The company’s pipeline is based around the concept of hypoxia. Hypoxia is a condition in which the body or region of the body is deprived of adequate oxygen supply. Studies have shown that hypoxia is often a characteristic of malignant tumors.
Over the past two years, shares of Threshold Pharmaceuticals have appreciated by more than 200 percent. Early in 2012, the company began to gain serious trading momentum as it released several important news announcements in short order.
The biggest announcement came in February 2012, when Threshold Pharmaceuticals announced a deal with Merck KGaA. The deal represents a global licensing opportunity worth up to $550 million. Under the terms of the deal, Threshold Pharmaceuticals received an upfront payment of $25 million with the potential to receive up to $525 million in milestone payments. According to the company’s third-quarter financial report, Threshold Pharmaceuticals has already received $97.5 million in upfront and milestone payments.