Dendreon Corporation (DNDN)

J.P. Morgan Healthcare Conference (Transcript)

January 9, 2012 6:30 PM ET

Executives

Mitchell Gold – President, CEO, Director

Gregory Schiffman – CFO, EVP, Treasurer

Analysts

[No Q&A Session for this event]

Presentation

Cory

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Let’s get going here. After what’s been quite a long first day, at least for me, it’s my pleasure to introduce a company whose story is anything but boring. Next up, we have Dendreon. And presenting from Dendreon, actually we have two presenters; one is President and CEO, Mitch Gold and then also the Chief Financial Officer, Greg Schiffman, will be joining him for the presentation as well. And following their presentation, there will be a breakout just across the hall in the Georgian Room.

With that, I will turn it over to Mitch.

Mitchell Gold

Thanks Cory. I would like to remind you that I will be making forward-looking statements during my presentation today, and I encourage you to refer to our most recent SEC filings regarding the risk factors associated with these statements.

As many of you know, at Dendreon we’ve had a singular focus for the last 15 years, and that’s to really dramatically change the way that cancer was treated. For me, that’s a personal war, I lost many family members to cancer and I really believe that Dendreon has really been on the forefront of changing the way that cancer’s treated. And as Cory said, sometimes that creates a very interesting story along the way.

While we had a number of challenges in 2011, I’m also proud of the many successes that we had throughout the year. Many of you may remember that we had three facilities approved throughout the course of 2011; the remainder of our facility in New Jersey, and then two additional plants came online, one in Atlanta, and the other one in Los Angeles.

In addition, we worked through a very complex and perhaps unprecedented national coverage analyst where we worked closely with the Center for Medicare Services to standardize coverage for programs across all 15 NCAs in the country. And I’m very pleased with the way the national coverage decision was finalized.

Importantly, we brought more than 500 new physician centers online to prescribe PROVENGE and that’s indicative of strong physician interest, an increase in confidence in the utilization of PROVENGE in their practices. And that resulted in gross revenues for 2011 of approximately $228 million.

And I know, Cory, you’ve mentioned this in some of your notes; if you put that in perspective for some of the most recent oncology launches, that puts PROVENGE as one of the top ten oncology launches in history.

As we move forward into 2012, we anticipate that we’ll add roughly the same number of centers as we did in 2011, or approximately 500 centers throughout the course of 2012. And as we’ve said in our calls, most of the growth that we’re seeing in our revenues is coming from the addition of new accounts.

As we move into 2012, we’re really going to focus on deeper penetration and increased utilization in our existing accounts as they gain comfort with the utilization of PROVENGE in their practice.

Now, PROVENGE represents a large commercial opportunity serving a significant unmet medical need. And I thought it would be useful maybe just to take a step back and review the continuum of prostate cancer across the spectrum.

If you look to the left, many patients, when they’re first diagnosed with prostate cancer, are treated by the urologist or perhaps their radiation oncologist with some form of definitive local treatment. That could be a radical prostatectomy, or that could be external beam radiotherapy, a number of other radiation modalities that are currently employed today.

Now about 60 to 70% of patients that are treated initially are cured, they never need any additional treatment at all. But about 30 to 40% of patients have a recurrence and they go on hormonal manipulation or castration, medication castration typically. Now that will last for about three to five years, but all patients eventually become what’s known as castrate-resistant, meaning their PSA is rising despite the fact that they’re on hormonal therapy.

Now, at that time, most of those patients reside in the urologist’s office. Now, for the last eight years, the only true modality that we’ve had available for these patients has been docetaxel, a chemotherapy regimen that provides approximately a 2 1/2 to 3-month improvement in median survival, but is associated with significant toxicities. And most patients and most physicians wait until the patients become severely symptomatic before they initiate docetaxel-based chemotherapy.

Now, this is what the landscape looks like currently. We are going through a revolution in the field of prostate cancer. Now PROVENGE is driving that, and what we see here, what PROVENGE is filling is the trough here that existed between asymptomatic and significantly-symptomatic prostate cancer. And it also sits at the [inaudible] position between when these patients are being treated by the urologist and when these patients are handed off to the medical oncologist for infusion-based chemotherapy.

And when we launched PROVENGE, we had to do two significant things. One is, is we had to educate the urology community on how to utilize infusion-based medicines in their practice, and that’s not an easy task. I can tell you, as an urologist, to get urologists to change their ways, that takes time. And I’m very pleased that we’ve been successful in getting urologists, particularly the large urology group practice organizations, to learn and increase the utilization of PROVENGE in their practice, so it now accounts for about 20% of our revenues for PROVENGE.

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