Threshold Pharmaceuticals, Inc. (THLD): A Biotech That Investors Need To Know About

On the soft tissue sarcoma treatment, Threshold appears to be in the lead. At one point earlier this year, ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) was thought to be a serious challenger. However, its Phase III trial was a complete disaster which sent the shares falling nearly 65% after the disappointing news.

Despite the failure for ZIOPHARM Oncology Inc. (NASDAQ:ZIOP)’s soft tissue sarcoma treatment, the company hasn’t given up hope yet. Ziopharm is continuing to explore palifosfamide (its candidate for soft tissue sarcoma) in an adaptive Phase III clinical trial for small cell lung cancer. The data from this trial is expected in early 2014. Additionally, ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) is progressing with its IL-12 platform. This platform is currently in Phase II trials which are evaluating its effectiveness in treating metastatic melanoma.

Ziopharm also ended its 2013 first quarter with $55.7 million in cash available. Given that the company lost $102 million in 2012, this cash should be able to take Ziopharm through at least September of this year. However, a secondary offering should be expected at some point during the next 12 months.

Conclusion

Despite the competition from Celgene and Eli Lilly & Co. (NYSE:LLY) in pancreatic cancer, I think Threshold has proven itself with its extremely smart partnership with Merck KGaA, its cash management, and its impressive clinical trial results. With an exciting second half of the year coming for Threshold Pharmaceuticals, Inc. (NASDAQ:THLD), investors should definitely keep their eye on this one.

The article Threshold Pharmaceuticals: A Biotech That Investors Need To Know About originally appeared on Fool.com and is written by Ted Mayer.

Ted Mayer has no position in any stocks mentioned. The Motley Fool recommends Celgene. Ted is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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