Dendreon Corporation (Nasdaq:DNDN) today reported results for the third quarter ended September 30, 2013. Net product revenue for the quarter was $68 million compared to $77.9 million for the quarter ended September 30, 2012, down 12.8% year over year. Net loss in the third quarter of 2013 was $67.2 million, or $0.44 per share, compared to a net loss of $154.9 million, or $1.04 per share for the same period in 2012. As of September 30, 2013, Dendreon had $233.3 million in cash, cash equivalents, and short-term and long-term investments.
John H. Johnson, chairman, president and chief executive officer of Dendreon said, “We have seen a strengthening of our business during the past two months. In fact, in October, we saw more patient enrollments than any other month this year. Should these enrollments convert to infusions at our historical rate, we expect that this will bring benefit to both the fourth quarter of this year and the first quarter of next year.”
Mr. Johnson continued, “Accelerating the path to profitability has been a top priority for Dendreon. Consistent with that goal, we are restructuring the Company and implementing additional cost reductions to enable Dendreon to succeed as a leaner, more nimble biotechnology company focused in immuno-oncology. Our plan enables us to slow our cash burn and be better positioned to achieve profitability while continuing to make strategic investments in manufacturing automation, select European initiatives and ongoing clinical development programs, including our combination and sequencing studies. We are confident that with the successful execution of our plan, we can create value for shareholders, physicians and patients.”
Dendreon’s restructuring and cost reduction plan will remove more than $125 million in cash operating expenses from the Company’s 2013 run rate, representing a reduction of approximately 20%. These reductions will come from all expense categories. Cost of goods sold (COGS) expenses are expected to decline by approximately $30 million. Following the restructuring, the Company will have approximately 820 employees, down from more than 2,000 employees at its peak.