logo
Plus   Neg
Share
Email

Dendreon Q1 Loss Narrows, But Shares Fall

Biotechnology company Dendreon Corp. (DNDN) on Monday reported a narrower loss for the first quarter, helped by a significant year-over-year increase in the sales of its prostate cancer vaccine Provenge.

The shares fell 10 percent in Monday's extended trade, as the company said in a conference call it expects only a modest sequential growth for Provenge in the second quarter.

Loss for the quarter narrowed to $103.91 million or $0.70 per share from $112.81 million or $0.78 per share in the prior-year period.

Excluding $17 million in cash and non-cash severance expenses, the company had a net loss of $87.1 million or $0.59 per share.

Excluding expenses such as for depreciation and amortization, severance, non-cash stock-based compensation expense, loss stood at $50.95 million or $0.35 per share, compared to $86.52 million or $0.59 per share last year.

On average, 19 analysts polled by Thomson Reuters expected the company to report a loss of $0.63 per share for the first-quarter. Analysts' estimates typically exclude special items.

First-quarter revenues surged to $82.1 million from $27.0 million last year. Analysts expected revenues of $81.23 million for the quarter.

Sales of Provenge climbed to $82 million from $27 million, but the sales growth was a modest 6.5 percent on a quarter-over-quarter basis.

John Johnson, president and CEO, said, "Dendreon continues to make significant progress in establishing PROVENGE as the foundation of care for men with advanced prostate cancer. We are pleased to have exceeded our guidance of low single digit quarter-over-quarter growth and the progress we have made in strengthening our commercial organization."

Operating expenses for the quarter increased sharply from last year owing to higher cost of product revenue.

In its earnings conference call, the company reiterated its guidance of modest quarter-over-quarter growth for the remainder of 2012.

DNDN closed on Monday higher by $0.36 or 3.18 percent at $11.69. The stock fell 10.2 percent in the extended trade and was at $10.50.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Walmart is ditching its dress code policy and is testing a new dress code that will allows "associates" to wear blue denim and shirts of any solid color. The updated dress coded guidelines now allow employees to wear blue "jeggings" and blue jeans and shirts of any solid color, according to a Walmart... Canadian investment firm Fairfax Financial Holdings Ltd. has submitted a "stalking horse" bid worth C$300 million, or $237 million, for the Canadian unit of Toys "R" Us, according to court documents. A stalking horse bid is an initial bid on the assets of a bankrupt company. The bankrupt company will choose an entity from a pool of bidders who will make the first bid on its assets. The car rental market in the U.S. is consolidating as large car rental companies are buying smaller, local companies to expand their portfolio of premium and value brands. The key players in the U.S. market include Enterprise Holdings, Hertz Global Holding and Avis Budget Group. Let's take a look at some of the best and worst car rental companies in the U.S.
Follow RTT