Threshold Pharmaceuticals Inc. has restocked its coffers with an $18.3 million private placement to push TH-302, its hypoxia-activated prodrug (HAP) for the treatment of solid tumors, through midstage and new clinical trials.

The funds will be used to evaluate the activity of TH-302 in at least four different combination trials against multiple tumor types.

They include an ongoing Phase I/II trial for the treatment of various solid tumors; completion of at least one additional Phase I/II trial in a new indication; initiation of at least one controlled Phase II trial of TH-302 alone or in combination with chemotherapy; for preclinical activities related to another HAP clinical candidate; and for general corporate purposes, including working capital, said CEO Barry Selick.

TH-302 offers a new start for Threshold, of Redwood City, Calif., which last year halted a Phase II lung cancer trial with glufosfamide, and a Phase III pancreatic cancer trial failed, although positive data emerged from subset analyses. (See BioWorld Today, Feb. 28, 2007.)

In February the company said data from a Phase II trial of glufosfamide in soft tissue sarcoma showed clinical activity but indicated the need for a different dosing regimen to improve the therapeutic index. The company also reported that data from a Phase II trial in ovarian cancer showed a lack of efficacy, leading to a halt on further enrollment or work in that indication.

The investors in the private placement include Sutter Hill Ventures, HealthCare Ventures LLC, Alta Partners and Three Arch Partners. Lazard Freres & Co. LLC and MTS Securities LLC, an affiliate of MTS Health Partners, served as the placement agents in the offering.

Investors will receive a warrant to purchase 0.4 shares of common stock for each share of common stock purchased. The warrants will have a five-year term and an exercise price of 39-cents per share. The company expects gross proceeds of $18.3 million and issuing 53,823,530 shares of common stock, and warrants to purchase 21,529,413 shares of common stock.

Four members of the company's management team will purchase 1,470,588 shares. Net offering proceeds are expected to be approximately $17 million.

Shares of Threshold (NASDAQ:THLD) were up 6 cents, or 19.3 percent, to close at 37 cents.

In other financing news:

• Bio-Bridge Science Inc., of Oak Brook, Ill., has increased the size of a previous private placement to a total of $1.45 million by closing a sale of additional investment units. Each unit consists of a share of common stock, and two series of common stock purchase warrants to purchase 0.5 share of common stock respectively. The offering was purchased by a director, Cheung Hin Shun Anthony. The net total of $1.33 million will be paid in 10 equal amounts in monthly installments until May 31, 2009. The proceeds will be used for general working capital purposes and to fund vaccine development in China.

• OctoPlus NV, of Leiden, the Netherlands, said it will receive an additional €2 million (US$3.2 million) under the terms of its bridge financing announced in March. The payment is made by the company's co-development partner in Locteron, Biolex Therapeutics Inc. The additional bridge financing will enable OctoPlus to secure one of the longer-term financing options currently under negotiation. The payment will expand OctoPlus' bridge financing to €6 million and carries the same terms including a 15 percent annual interest.