Dendreon Corporation, which has a biotech factory in Seal Beach, on Friday, Nov. 2, 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 percent year over year and down 2.5 percent on a sequential basis.
Dendreon sells only one product: Provenge, a treatment that uses a terminal prostate cancer patient’s own immune system to fight the disease. Some studies, paid for by Dendreon, show the treatement can add a few months to a patien’ts life.
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.
Restructuring
Expense reductions are as expected, which bring administrative functions in line with companies of comparable size and complexity.
A Dendreon press release said the investors should 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.
Dendreon officials are also expected to continue to reduce the cost of goods sold and they anticipate seeing COGS below 50 percent 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.
Clinical data
Data presented at European Society for Medical Oncology’s 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
• Dendreon officials made the 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,” Johnson said.
“With our restructuring on track, we believe we are in a strong financial position and are looking to the future as we meet the growing interest for Provenge in the marketplace,” Johnson said.
