Threshold Pharmaceuticals (NASDAQ: THLD) shares soared 41% following early morning news that the company has entered into a definitive agreement to merge with Molecular Templates, Inc., a privately held biopharmaceutical company. Per the agreement, Molecular Templates will merge with a wholly-owned subsidiary of Threshold in an all-stock transaction, resulting in a combined Nasdaq-listed company focused on the development of novel treatments for cancer. At the close of the transaction, Longitude Capital will invest $20 million, subject to certain conditions, including the receipt of additional equity financing commitments of $20 million. Molecular Templates’ proprietary technology has been used to create biologic drug candidates known as Engineered Toxin Bodies (ETBs), such as MT-3724, currently being developed to treat non-Hodgkin’s Lymphoma (NHL). The combined company will be capitalized to support advancement of MT-3724 through pivotal trials in NHL, as well as Threshold’s evofosfamide through a phase 1b trial at MD Anderson Cancer Center. “Following an extensive and thorough review of strategic alternatives, we believe this transaction combines promising drug candidates, a solid management team and the resources to create significant value for shareholders and important new cancer therapies for patients,” Threshold CEO Barry Selick, Ph.D., stated in the news release.
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About Threshold Pharmaceuticals
Threshold is a clinical-stage biopharmaceutical company focused on the development of drugs and diagnostic agents targeting the tumor microenvironment of solid tumors and hematologic malignancies. This approach offers broad potential to treat a variety of cancers. By selectively targeting tumor cells, the company is building a pipeline of drugs that hold promise to be more effective and less toxic to healthy tissues than conventional anticancer drugs. For additional information, please visit the company’s website at www.thresholdpharm.com.
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