Date: 2015-12-18
Type of information: Restructuring
Compound:
Company: Threshold Pharmaceuticals (USA - CA)
Therapeutic area: Cancer - Oncology
Type agreement: restructuring
Action mechanism:
Disease:
Details: * On December 18, 2015, Threshold Pharmaceuticals announced that it has initiated a significant reduction in its workforce in order to focus the company's financial resources in the near term on two ongoing Phase 2 proof-of-concept clinical trials of tarloxotinib bromide, the company's novel epidermal growth factor receptor tyrosine kinase inhibitor (EGFR TKI) licensed from the University of Auckland, New Zealand .
Threshold will reduce its workforce by approximately two-thirds, resulting in between 20-25 remaining employees. Threshold anticipates the one-time severance-related charge associated with the workforce reduction to be approximately $2.6 million , which includes approximately $0.3 million of non-cash expense related to the extension of the post-termination exercise period for the outstanding vested stock options for the affected employees. The majority of the charges will be paid by the end of the first quarter of 2016.
Threshold has a global license and co-development agreement for evofosfamide with Merck KGaA. Both companies are evaluating next steps for the evofosfamide program.
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