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Dendreon Announces Third Quarter 2012 Results

Stocks in this article: DNDN

November 2, 2012 – Dendreon Corporation (Nasdaq: DNDN) today reported results for the quarter ended September 30, 2012. Net product revenue for the quarter was $78 million, compared to $61 million for the quarter ended September 30, 2011, up 27% year over year and down 2.5% on a sequential basis.

Net loss in the third quarter of 2012 was $154.9 million, or $1.04 per share, compared to a net loss of $147.1 million, or $1.00 per share, for the same period in 2011. The current period includes a one-time charge of approximately $81 million related to cash and non-cash restructuring expenses. Excluding these expenses and other non-cash charges, the Company had a non-GAAP loss of approximately $50 million, or $0.33 per share.

As of September 30, 2012, Dendreon had approximately $445.1 million in cash, cash equivalents, and short-term and long-term investments, compared to $617.7 million as of December 31, 2011.

Recent Highlights:

  • Delivered solid performance in community accounts:
    • Community urology grew 14% overall quarter over quarter; accounts serviced by the new key account management team put in place earlier this year grew 16%, demonstrating that commercial investments made earlier in the year are paying off
    • Performance in community oncology was essentially flat (a decrease of less than 1%), representing an improvement over the 8% decline in the second quarter
    • Performance in academic medical centers declined 25%, which we believe is largely driven by an increase in clinical trial activity and site activation by other companies
  • Continued new physician interest in PROVENGE® (sipuleucel-T):
    • Added 54 net new accounts in the third quarter, bringing total number of infusing accounts to 741
  • Continued improvement in reimbursement landscape for physicians:
    • Aetna enhanced its coverage policy for PROVENGE prescribers
    • Received contract award from the Department of Veterans Affairs
    • Reported average time to payment remains less than 30 days for physicians
  • Implemented direct-to-consumer initiatives:
    • Continued PROPEL education series, with physicians presenting an overview of PROVENGE to patients at local and regional prostate cancer support group meetings
    • During Prostate Cancer Awareness Month, executed national media campaign to raise awareness in disparity of prostate cancer in African American men and hosted community events to disseminate PROVENGE information to patients, families and caregivers
  • Restructuring is on track:
    • Expense reductions are as expected, which bring administrative functions in line with companies of comparable size and complexity
    • Expect to begin to see net benefits associated with the restructuring initiatives to begin to appear in financial results as early as the first half of 2013, with full benefits realized in the third quarter of 2013
    • Expect to continue to reduce cost of goods sold (COGS) and anticipate seeing COGS below 50% following the closure of the Morris Plains, NJ facility, which is scheduled to close by the end of 2012
    • Expect to begin generating positive cash-flow from US operations at $100 million in quarterly sales
  • Continued focus on clinical data:
    • Data presented at European Society for Medical Oncology’s (ESMO) annual congress continues to provide important insights into the treatment of advanced prostate cancer with PROVENGE
    • Actively evaluating partnering strategies for European expansion; completed first patient’s treatment in the sipuleucel-T European Union open-label study; expect a mid-2013 regulatory decision in Europe
    • Completed enrollment of Zytiga (abiraterone acetate) sequencing study; expect to present data in 2013
    • Made decision to proceed with Xtandi (enzalutamide) sequencing study

“We delivered strong growth in urology and have continued to improve results in oncology, which demonstrate our commercial progress,” said John H. Johnson, chairman, president and chief executive officer. “These results were offset by a decline in the academic setting, which we believe is being driven by an increase in clinical trial activity from other companies. That said, we are pleased with the progress we’ve made in strengthening our commercial organization.”

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