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Dendreon Announces Second Quarter 2012 Results

Stocks in this article: DNDN

July 30, 2012--Dendreon Corporation (NASDAQ:DNDN) today reported results for the quarter ended June 30, 2012. Net product revenue for the quarter was $80.0 million compared to $48.1 million for the quarter ended June 30, 2011, up 66% year over year and down 2.4% on a sequential basis.

Net loss in the second quarter of 2012 was $96.1 million or $0.65 per share, compared to a net loss of $116.0 million, or $0.79 per share, for the same period in 2011. The current period includes approximately $5.2 million in cash and non-cash severance expenses. Excluding these expenses, the company had a net loss of $90.9 million or $0.61 per share.

As of June 30, 2012, Dendreon had approximately $509.7 million in cash, cash equivalents, and short-term and long-term investments compared to $617.7 million as of December 31, 2011.

Recent Highlights:

  • Announced strategic restructuring to accelerate path to profitability and future growth:
    • The Company expects to reduce costs by approximately $150 million annually.
    • The Company expects a reduction in headcount of more than 600 positions, including contractors, over the next 12 months.
    • The Company expects to reduce its cost of goods sold (COGS) to less than 50 percent of net product revenue following the closure of the Morris Plains, NJ facility.
    • Full implementation of the restructuring is expected to take 12 months. Once implemented the Company will be positioned to be cash flow positive when net product revenue reaches approximately $100 million in a quarter, a 20% improvement from prior guidance.
  • Continued new physician interest in PROVENGE® (sipuleucel-T):
    • Added 115 new accounts in the second quarter, up from 84 new infusing accounts last quarter. Total number of infusing accounts in now at 687.
  • Reimbursement landscape remains stable for physicians:
    • Reported average time to payment remains less than 30 days for physicians
    • Q-Code remains in effect and CMS are updating coverage policies for PROVENGE
  • Presented important findings at the American Urological Association and American Society of Clinical Oncology annual meetings:
    • Retrospective analysis of IMPACT trial by baseline PSA quartile suggested PROVENGE extended median overall survival in all subgroups with a trend toward an increased magnitude of treatment benefit in patients with a lower baseline PSA.
    • Patients with localized prostate cancer in an open-label Phase 2 trial called NeoACT, received three infusions of PROVENGE prior to radical prostatectomy. Investigators found significant increases ( > 3-fold) in CD3+ and CD4+ T-cells populations at the tumor rim between the interface of benign and malignant tissue when compared with the pretreatment biopsy tissue. Results from these analyses support further evaluation of PROVENGE in the neoadjuvant setting. PROVENGE is not currently indicated for neoadjuvant treatment of localized prostate cancer.

“We are confident in the long-term opportunities for PROVENGE,” said John H. Johnson, chairman, president and chief executive officer. “We believe the strategic restructuring plan announced today will accelerate our path to profitability and future growth as we execute on our core mission of providing PROVENGE to patients around the world. By re-configuring our manufacturing model, strengthening our commercial organization and lowering our overall cost structure, we believe we can deliver value to our shareholders and our physician customers and their patients.”

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