Threshold Pharmaceuticals to sell 6.25 million shares in follow-on offering

New York, Sept. 27 - Threshold Pharmaceuticals, Inc. announced it plans to sell 6.25 million shares in a follow-on offering.

The deal will also have a greenshoe for 937,500 shares.

Morgan Stanley is bookrunner for the transaction, which will be sold from an S-1 registration statement. CIBC World Markets Corp. and Lazard Capital Markets are co-managers.

Threshold, a Redwood City, Calif.-based biotechnology company, will use about $80 million of the proceeds for the clinical development of TH-070, glufosfamide and 2DG, including potential trials for additional indications, $10 million for research and development of additional product candidates and $8 million for initial development of sales and marketing capabilities.

Threshold is focusing on drugs based on metabolic targeting, an approach that targets fundamental differences in metabolism between normal and diseased cells.

Its initial target is benign prostatic hyperplasia (BPH), a disease characterized by overgrowth of the prostate, and cancer.

TH-070, its lead product candidate for BPH, has completed a Phase 2 clinical trial in Italy, began a Phase 2 trial in the United States in June and a Phase 3 trial in Europe in August.

Glufosfamide, the lead product candidate for cancer, has completed two Phase 1 and five Phase 2 clinical trials in patients with various solid tumors.

2DG, or 2-deoxyglucose, is Threshold's product candidate for the treatment of solid tumors and is being evaluated in a Phase 1 clinical trial alone and as a combination therapy.

Threshold stock closed at $13.77 on Tuesday.

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