Dendreon Corporation, a biotech firm that has a factory in Seal Beach, reported increased revenues for the second quarter on Monday, July 30. Unfortunately, the company still lost money.
The Seattle-based pharmaceutical company has a factory in Seal Beach which turns out its only product: Provenge, a treatment that teaches a terminal prostate cancer patient’s immune system to fight the disease, adding perhaps as much as three months to that patient’s expected lifespan.
Dendreon Corporation this week 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 percent year over year and down 2.4 percent 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 Dec. 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 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 percent improvement from prior guidance.
• Continued new physician interest in Provenge (also known as 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.
The reported average time to payment remains less than 30 days for physicians
“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,” Johnson said.
Restructuring plan
That same day, Dendreon announced a strategic restructuring plan designed to accelerate the company’s path to profitability and future growth.
