Sec Form 4 Filing - PEQUOT CAPITAL MANAGEMENT INC @ THRESHOLD PHARMACEUTICALS INC - 2007-02-28

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person PEQUOT CAPITAL MANAGEMENT INC 2. Issuer Name and Ticker or Trading Symbol THRESHOLD PHARMACEUTICALS INC [ THLD] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner _____ Officer (give title below) X __ Other (specify below) See Footnote 1 (Last) (First) (Middle) 500 NYALA FARM ROAD 3. Date of Earliest Transaction (MM/DD/YY) 02/28/2007 (Street) WESTPORT, CT06880 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) _____ Form filed by One Reporting Person __ X __ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock, $0.001 par value 02/28/2007 S 25,000 ( 2 ) D $ 1.49 1,140,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 120,000 ( 2 ) D $ 1.5 1,020,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 30,000 ( 2 ) D $ 1.5005 990,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 90,000 ( 2 ) D $ 1.5007 900,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 75,000 ( 2 ) D $ 1.505 825,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 110,000 ( 2 ) D $ 1.51 715,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 125,000 ( 2 ) D $ 1.52 590,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 25,000 ( 2 ) D $ 1.5281 565,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 25,000 ( 2 ) D $ 1.5337 540,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 02/28/2007 S 125,000 ( 2 ) D $ 1.5546 415,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 03/01/2007 S 225,000 ( 2 ) D $ 1.45 190,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 03/01/2007 S 125,000 ( 2 ) D $ 1.46 65,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 03/01/2007 S 30,000 ( 2 ) D $ 1.475 35,574 ( 2 ) I ( 2 ) Investment Advisor ( 1 ) Common Stock, $0.001 par value 03/01/2007 S 35,574 ( 2 ) D $ 1.5 0 ( 2 ) I ( 2 ) Investment Advisor ( 1 )

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other PEQUOT CAPITAL MANAGEMENT INC 500 NYALA FARM ROAD WESTPORT, CT06880 See Footnote 1 ENRIGHT PATRICK G 500 NYALA FARM ROAD WESTPORT, CT06880 X Signatures Aryeh Davis, GC & COO, Pequot Capital Management, Inc. 03/02/2007 Signature of Reporting Person Date Patrick G. Enright, Director (1) 03/02/2007 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Pequot Capital Management, Inc. ("Pequot") 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 a consultant of Pequot and serves on the Board of Directors of the Issuer and each disclaim beneficial ownership of these securities except to the extent of their pecuniary interest. ( 2 )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.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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