UPDATE: Piper Jaffray Initiates Threshold Pharmaceuticals at Neutral Ahead of Pivotal Data

Piper Jaffray initiated coverage on Threshold Pharmaceuticals, Inc. THLD with a Neutral rating and a $5.00 price target. Piper Jaffray noted, "Lead candidate TH-302 ('302) has a well characterized “warhead” modified with a hypoxia-activated trigger that targets activity to the tumor core, which may be neglected by traditional chemotherapy and a source of recurrence. '302 is in pivotal testing for sarcoma and pancreatic cancer, with data later in 2013 that we believe may be positive, based on our diligence on ‘302's mechanism and prior clinical results. However, we remain on the sidelines pending pivotal data that confirms the "hypoxia-hypothesis" and enhances clarity on the efficacy/safety of the drug that may provide it competitive advantage over drugs from Celgene (pancreatic) and Ziopharm (sarcoma)." Threshold Pharmaceuticals closed at $4.51 on Thursday.