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Dendreon Q1 Loss Narrows, But Shares Fall

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5/8/2012 1:04 AM ET

Biotechnology company Dendreon Corp. (DNDN: Quote) 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.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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Editors Pick
Chipmaker Advanced Micro Devices Inc. said Thursday after the markets closed that its first quarter loss narrowed from last year, helped by strong revenue growth in its graphics and visual solutions business. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. After trending higher over the past few sessions, stocks showed a lack of direction throughout the trading day on Thursday. The major averages spent the session bouncing back and forth across the unchanged line before ending the day mixed. While the major averages closed on opposite sides of the unchanged line, they all showed only modest moves. U.S. Secretary Of State John Kerry said Thursday that he and his counterparts from Russia, Ukraine and the European Union have reached an agreement on a preliminary plan for ending the ongoing crisis in Ukraine. Kerry was speaking at the end of the Ukraine contact group's first meeting, comprising the foreign ministers of Russia, Ukraine, the EU and the U.S., in the Swiss city of Geneva.
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