Let me be very clear, I’m not satisfied with the commercial performance of PROVENGE and believe more men with advanced prostate cancer should be benefiting from the product. We recognized that we have to rebuild our commercial organization to become more flat and begin with the hiring of Joe in March and has continued through the second quarter. We are not backing down our commitment to PROVENGE, in fact our investment in growing the product will remain constant and we will continue to invest in generating PROVENGE clinical data at the current rate. We will increase our focus on customer service, and this is in line with the top priority that I outlined in our Q1 call.

Second, I learned that we have made important strides in how to manufacture and deliver PROVENGE. Looking at the cost of goods they would be very easy and very wrong to apply conventional wisdom in making decisions about how to lower these costs. After careful analysis we have determined that we can deliver up to $1 billion of PROVENGE from our two manufacturing facilities in Georgia and California without impacting quality or customer service, thereby lowering our cost of goods which was in line with our second priority that I outlined. Since launch we have earned a great deal about the strives in automation that could help us at least double the output of PROVENGE in these two facilities to help us meet any growing demand as well as continuing to lower cost of goods.

Third, I learned that while a company grew it's employee base and invested heavily to build systems and prepare for commercialization, there are opportunities to become more efficient and cut cost from a D&A standpoint to come more into line with benchmark companies.

Read the rest of this transcript for free on seekingalpha.com

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