Threshold Remains Undervalued, Says William Blair

In a research note issued today, William Blair analyst John Sonnier reiterated an Outperform rating on Threshold Pharmaceuticals (THLD), following the company’s second-quarter results, which were in line with the Street’s estimate. No price target was provided.

The following bullets contain some highlights from that report:  

  • Threshold ended the quarter with $75 million in cash and no debt. To-date, Threshold has received $110 million in up-front payments and milestones from partner Merck KGaA for the development of TH-302, which offers further evidence, in our view, of the value in Threshold’s technology platform and in TH-302. We updated our financial projections to come more in line with operating trends.
  • Threshold and its partner Merck KGaA (MRK) continue to make clinical progress in the two ongoing Phase III trials with TH-302 in sarcoma and pancreatic cancer. A planned interim analysis in the sarcoma trial is expected to take place in September, and the two Phase III trials with TH-302 are expected to report top-line results in 2015. We reiterate our view that the Street continues to underappreciate the value in Threshold’s technology platform and in its lead asset, TH-302, in particular. TH-302 has been tested in over 1,000 patients to date and has demonstrated an attractive efficacy and safety profile.
  • We believe Threshold remains undervalued, given the potential of its technology platform and TH-302. With two ongoing Phase III trials with TH-302 and clinical progress across other types of cancers, we believe the opportunity for significant shareholder value creation exists. 

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Sonnier has a 40.0% average return and a 88.9% success rate. Sonnier is ranked #293 out of 3200 analysts.

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