Threshold Pharmaceuticals, Inc. (NASDAQ:THLD) reported that its revenue for 4Q2015 came at $65.9 million, up from $3.7 million in the comparable quarter in FY2014. A major part of revenue was linked to the amortization of the total of $110 million in milestone and upfront payments earned in fiscal 2013 and 2012 from its collaboration with Merck KGaA. This revenue earned from the deal was initially being amortized over the applicable performance period, and therefore after the termination of the deal in last December, Threshold Pharmaceuticals straightaway recognized $65.9 million of the outstanding deferred revenue into its recorded revenue in 4Q2015.
Threshold Pharmaceuticals reported that research and development expenses in 4Q2015 amounted to $11.4 million, up from $8.6 million for the comparable period in FY2014. This increase can be primarily attributed to a $1.6 million jump in clinical development and consulting expenses, and $1.2 million jump in employee related expenses. The G&A expenses totaled to $2.2 million for 4Q15, compared to $2.6 million for the 4Q2014. The decline can be attributed to a $0.2 million drop in consulting expenses, and also a $0.2 million decline in employee related expenses.
As of December 31, 2015, the company reported $48.7 million in cash, investments and cash equivalents. As per the update, current cash balance is seen as adequate to carry out Threshold Pharmaceuticals’ operations into 2017. GAAP net income came at $69.7 million, versus GAAP net loss of $6 million for 4Q2014.
Earlier in this month, Threshold Pharmaceuticals dismissed the global license and co-development deal with Merck KGaA, originally entered into 2012 for evofosfamide due to the dismal Phase 3 trial data reported in December 2015. The Termination Agreement offers tiered royalties on revenues and breakthrough payments to Merck KGaA depending upon the future promising advancement and commercialization of evofosfamide. It should be noted that as per the results from the Phase 3 MAESTRO study, reported in January 2016, the primary efficacy goal of overall survival closely missed statistical number.