Threshold Pharmaceuticals Inc. ($THLD) recently announced that it has agreed to merge with cancer-focused biopharmaceutical company Molecular Templates Inc. in an all-stock deal. Under the terms of the deal, the current shareholders of Molecular Templates will own nearly 65.6% of the newly formed combined entity. The remaining 34.4% will be owned by the current shareholders of Threshold Pharma. The new entity will be named Molecular Templates. It will be listed on the Nasdaq Capital Market and will trade under the symbol MTEM.
The newly created entity will focus on developing treatments for cancer. It will have two clinical-stage candidates, which are Molecular Templates’ lead product MT-3724, and Threshold’s evofosfamide (formerly TH-302). MT-3724 has reported positive results in early-stages trial for treating relapsed and refractory non-Hodgkin’s lymphoma, while a Phase 1 combination trial of evofosfamide is expected to commence shortly.
The Threshold Pharmaceuticals stock gained over 19 percent this year so far. The company had to abandon its development of the potential cancer drug, tarloxotinib, after the drug failed in its Phase 2 studies.
The merger has already been approved by the boards of directors of both companies. The deal is expected to be finalized during the second quarter of this year.