logo
Share SHARE
FONT-SIZE Plus   Neg

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 RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The holiday throng seeking to take a flight out to their preferred destinations at the at New York's Kennedy International Airport ahead of the Memorial Day holiday were in for a rude shock. Technology played a spoilsport, as a computer system broke down Sunday evening at a terminal, causing flight delays and cancellations that resulted in manual check-in process for thousands of holiday passeng The month of May saw the FDA greenlight 5 new drugs, including 1 new molecular entity, and surprisingly turn down 1 drug candidate, whose approval was considered a no-brainer by some experts. Lab equipment maker Thermo Fisher Scientific Inc. has agreed to acquire electron microscope maker FEI Co. for about $4.2 billion in cash, the two companies said Friday. Thermo Fisher noted that FEI's electron microscopy platform will complement its own mass spectrometry systems to accelerate advancements in structural biology.
comments powered by Disqus
Follow RTT