“We remain committed to our current level of investment in the commercialization of PROVENGE and generating PROVENGE clinical data. We remain confident in the long-term opportunities for PROVENGE, and believe these actions will better position Dendreon to create value for our shareholders and patients alike,” concluded Mr. Johnson.
The plan is designed to optimize resources and accelerate profitability through a three-pronged approach:
- Restructure Technical Operations. Dendreon will reconfigure its network to operate at a significantly lower cost, while continuing to meet customer demand and expectations for future growth, without any disruptions in service. With efficiency gains in plant utilization recognized over the past six months, Dendreon has determined that the manufacturing of PROVENGE can be handled through the Company’s existing manufacturing facilities located in Union City, GA and Seal Beach, CA. As a result, the Company will close its Morris Plains, NJ facility, which is expected to occur in the fourth quarter of 2012. Dendreon expects to have the ability to manufacture approximately $1 billion of product from the Union City and Seal Beach facilities. Over time, with the implementation of automation, Dendreon believes that its manufacturing capacity could at least double.
- Restructure Administrative Functions. Dendreon will restructure its other administrative functions to align its support costs with the biotechnology industry norm. The Company expects to reduce these costs by more than 35 percent over the next 12 months.
- Strengthen Commercial Operations. Dendreon will continue to strengthen its commercial operations and refocus its investment to support sales growth, improve execution of its sales force and reorganize its market access team for better on-the-ground support at each touch point from sale to physician administration. The Company has already begun to reorganize and has attracted a top quality sales leadership team. The Company is also adopting a unique customer service model with enhanced technology to serve customers more efficiently.
“With a more robust commercial organization, we can further establish PROVENGE as the foundation of treatment for men with advanced prostate cancer,” said Joe DePinto, executive vice president of global commercial operations. “We remain committed to providing our physician customers with the quality products and high levels of service that they have come to expect from us. We are excited about the opportunity for PROVENGE in all of our key market segments, and are confident that the enhancements we are making in our commercial operations will drive sales growth as we continue to serve our customers and their patients.”
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV