MLV Maintains Buy On Threshold Pharmaceuticals Following 4Q:14 Update


In a research report released Tuesday, MLV analyst Thomas Yip maintained a Buy rating on Threshold Pharmaceuticals, Inc. (NASDAQ:THLD) with a $14.50 price target, following the company’s fourth-quarter financial results and update on its pipeline.

Yip noted, “We expect two event-driven catalysts in 2H:15 and their subsequent analyses in early 2016 to validate evofosfamide (or EVO, formerly TH-302) in soft tissue sarcoma (STS) and pancreatic cancer. Primary analyses from the Phase III trial (406 trial) of EVO + doxorubicin in STS and the Phase III MAESTRO trial of EVO + gemcitabine in pancreatic cancer will be triggered by 434 and 508 events (deaths), respectively. We remain confident that positive readouts from these trials (both under SPA’s) will lead to EVO’s projected approval for these indications in 2018. Therefore, we view 2015 as a crucial year for EVO and Threshold.”

Furthermore, “Threshold ended 4Q:14 with $58.6 million in cash and cash equivalents, and added $28.2 million in net proceeds from a public offering after year-end. With Merck KGaA (Threshold’s partner for EVO) covering 70% of R&D expenses related to EVO, we estimate Threshold’s annual burn rate at $32.9 million. Therefore, Threshold has over 2 years of cash left with an $86.8 million pro-forma cash balance.”

On average, the analyst consensus for Threshold on TipRanks is Strong Buy, and the average price target is $13.83.

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