The Seattle-based company also said gross revenue for its Provenge prostate cancer drug totaled $22 million in August, and that Hans Bishop had exited the chief operating officer post. It expects the layoffs to result in a cost of roughly $21 million, including a non-cash charge of $5 million related to stock-based compensation expenses.
The stock was last quoted at $11.15, up 2.5%, on volume of more than 400,000, according to Nasdaq.com.
"While the last month has been difficult for our employees, these cost reductions are necessary to ensure the long-term growth of our company, and I am grateful to our dedicated and passionate employees who are the driving force behind Dendreon," said Mitchell Gold, Dendreon's president and chief executive officer, in a statement.The shares closed Thursday's regular session at $10.88, a decline of nearly 7% on the day. Year-to-date, the stock has lost almost 70%. The company has reported wider than expected losses for the past eight quarters, and profitability is still a long ways away. "Given the current cash balance and the reduced levels of spending following the restructuring, Dendreon expects to have sufficient cash to enable the company to achieve a cash flow break even position in the United States at an annual run rate of approximately $500 million in revenue," the company said on Thursday. So far in 2011, the company has reported revenue totaling roughly $107 million through its fiscal second quarter ended in June. The average estimate of analysts polled by Thomson Reuters is for revenue of $218.7 million for the full year.