-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 P5py+kd8J0cVH+GL9jmfJ5A7weBdOLcPbmEF7Xne3FGXEw0WXuGB6UDqvIV6kJZM
 NrYBCZsLAFNMmIa5yp2HKA==

<SEC-DOCUMENT>0001005477-06-004840.txt : 20060927
<SEC-HEADER>0001005477-06-004840.hdr.sgml : 20060927
<ACCEPTANCE-DATETIME>20060927155803
ACCESSION NUMBER:		0001005477-06-004840
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060925
FILED AS OF DATE:		20060927
DATE AS OF CHANGE:		20060927

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			THRESHOLD PHARMACEUTICALS INC
		CENTRAL INDEX KEY:			0001183765
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				943409596
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1300 SEAPORT BOULEVARD
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063
		BUSINESS PHONE:		650 474 8200

	MAIL ADDRESS:	
		STREET 1:		1300 SEAPORT BOULEVARD
		CITY:			REDWOOD CITY
		STATE:			CA
		ZIP:			94063

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			ENRIGHT PATRICK G
		CENTRAL INDEX KEY:			0001253886

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32979
		FILM NUMBER:		061111287

	MAIL ADDRESS:	
		STREET 1:		863A MITTEN RD
		CITY:			BURLINGAME
		STATE:			CA
		ZIP:			94010

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			PEQUOT CAPITAL MANAGEMENT INC
		CENTRAL INDEX KEY:			0001071955
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32979
		FILM NUMBER:		061111288

	BUSINESS ADDRESS:	
		STREET 1:		500 NYALA FARM ROAD
		CITY:			WESTPORT
		STATE:			CT
		ZIP:			06880
		BUSINESS PHONE:		2034292200

	MAIL ADDRESS:	
		STREET 1:		500 NYALA FARM ROAD
		CITY:			WESTPORT
		STATE:			CT
		ZIP:			06880

	FORMER NAME:	
		FORMER CONFORMED NAME:	PEQUOT CAPITAL MANAGEMENT INC/CT/
		DATE OF NAME CHANGE:	19981118
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar123.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-09-25</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001183765</issuerCik>
        <issuerName>THRESHOLD PHARMACEUTICALS INC</issuerName>
        <issuerTradingSymbol>THLD</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001071955</rptOwnerCik>
            <rptOwnerName>PEQUOT CAPITAL MANAGEMENT INC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>500 NYALA FARM ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>WESTPORT</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06880</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>1</isOther>
            <otherText>See Footnote 1</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001253886</rptOwnerCik>
            <rptOwnerName>ENRIGHT PATRICK G</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>500 NYALA FARM ROAD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>WESTPORT</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06880</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (Right-to-buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6.26</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-09-25</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F3"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15000</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                    <footnoteId id="F3"/>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-06-19</value>
            </exerciseDate>
            <expirationDate>
                <value>2015-05-19</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>15000</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Investment Advisor</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (Right-to-buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>4.13</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-09-25</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>D</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F4"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15000</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F4"/>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F4"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                    <footnoteId id="F4"/>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2006-06-25</value>
            </exerciseDate>
            <expirationDate>
                <value>2016-05-24</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>15000</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F4"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                    <footnoteId id="F2"/>
                    <footnoteId id="F4"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                    <footnoteId id="F2"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>Investment Advisor</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Pequot Capital Management, Inc. (&quot;Pequot&quot;) is an investment advisor registered under Section 203 of the Investment Advisers Act of 1940 and has voting and investment power with respect to securities in its clients' accounts. Pequot disclaims any obligation to file this report, and this report shall not be deemed an admission that Pequot is subject to Section 16 with respect to the Issuer of such securities.  Patrick G. Enright is an employee of Pequot and serves on the Board of Directors of the Issuer and disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.</footnote>
        <footnote id="F2">Pequot disclaims beneficial ownership of these securities, and this report shall not be deemed an admission that Pequot is, for the purposes of Section 16 of the Exchange Act or otherwise, the beneficial owner of such securities.</footnote>
        <footnote id="F3">On September 25, 2006, the Issuer cancelled, pursuant to the Issuer's Option Exchange Program (the &quot;Program&quot;), an option granted to the Reporting Person on May 19, 2005 to purchase 15,000 shares of the Issuer's common stock at an exercise price of $6.26 per share, which vested monthly over one year (1/12th per month) beginning on June 19, 2005.  In exchange for the cancellation of the option, the Reporting Person will receive a replacement option on September 27, 2006 for the same number of shares, that will have an exercise price equal to the closing price of the Issuer's common stock as of the close of business on September 27, 2006 and will be fully vested as of the same date of the replaced option grant.</footnote>
        <footnote id="F4">On September 25, 2006, the Issuer cancelled, pursuant to the Issuer's Option Exchange Program (the &quot;Program&quot;), an Option granted to the Reporting Person on May 25, 2006 to purchase 15,000 shares of the Issuer's common stock at an exercise price of $4.13 per share, which vested 1/12th for the first 11 months following the date of the grant and the remaining shares will vest on the date of the Issuer's annual stockholder meeting for the year following the year of the grant of the Option.  In exchange for the cancellation of the Option, the Reporting Person will receive a replacement option on September 27, 2006 for the same number of shares, that will have an exercise price of equal to the closing price of the Issuer's common stock as of the close of business on September 27, 2006 and will be fully vested as of the same date of the replaced option grant.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Aryeh Davis, GC &amp; COO, Pequot Capital Management, Inc.</signatureName>
        <signatureDate>2006-09-27</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Patrick G. Enright, Director (1)</signatureName>
        <signatureDate>2006-09-27</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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