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Dendreon Swings To Profit, Revenue Misses; Shares Plunge 18%

Dendreon Corp. (DNDN) Monday posted a profit for the fourth quarter, helped mainly by a gain from sale of interest in Victrelis royalty. However,revenues for the quarter fell short of analysts' estimates, sending the company's shares down over 18 percent.

Dendreon's results for the fourth quarter were boosted by the $125 million payment received on the sale of Victrelis royalty interest. Victrelis is approved for the treatment for chronic hepatitis C.

Revenues for the quarter surged to $202.15 million from $25 million last year. Meanwhile, product revenues, which exclude royalty and other revenues, grew to $77 million from $25 million last year, but fell short of analysts' estimate of $120.80 million.

The Seattle, Washington-based Dendreon's profit for the quarter was $38.1 million or $0.26 per share compared to loss of $91.83 million or $0.64 per share last year. On an adjusted basis, net income was $0.45 per share compared to loss of $0.50 per share last year.

On average, 21 analysts polled by Thomson Reuters expected the company to report loss of $0.23 per share. Analysts' estimates typically exclude special items.

DNDN is currently trading on the Nasdaq at $12.21, down $2.71 or 17.24%. Trading volume for the day is 24 million shares, above the three-month average volume of 9 million.

by RTT Staff Writer

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