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 bench to bedside journey of drugs is fraught with challenges. It is estimated that only 5 in 5,000 compounds that enter preclinical testing make it to human testing, and out of those 5, only 1 may pass through all the regulatory hurdles needed to reach pharmacy shelves. Major League Baseball is talking expansion for the first time in a few decades. Owners stand to make a pretty penny from expansion fees and subsequent television rights. The possibility of a more balanced schedule is also enticing. Strong expansion candidates in the U.S. and Canada are ready... The New York Times is teaming up with Google again to give away Google Cardboard, the virtual reality headsets, but this time only to its "most loyal" digital subscribers. The company said that the digital-only subscribers selected for this distribution were chosen based on the duration of their subscriptions.
comments powered by Disqus
Follow RTT