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Dendreon Slips To Loss, Yet Tops Estimate; Stock Up - Update

Biotechnology company Dendreon Corp. (DNDN), Monday reported a loss in the fourth quarter from a profit last year, hurt by lower revenues due the absence of royalty income from the sale of hepatitis C drug Victrelis that was included in the year-ago quarter. The quarterly loss was also exacerbated by restructuring and impairment charges.

However, Dendreon's loss was lower when compared with Street estimates, while revenues exceeded expectations. Following the announcement of results, Dendreon stock gained five percent in morning trade on the Nasdaq.

Seattle, Washington-based Dendreon reported fourth-quarter net loss of $38.70 million or $0.26 per share, compared with a net profit of $38 million or $0.26 per share in the prior year quarter.

Results for the reporting quarter included charges of $36 million, relating to restructuring, contract termination and asset impairment.

Excluding items, adjusted loss for the quarter was $45 million or $0.30 per share, compared with a loss of $58 million or $0.40 per share last year.

On average, 21 analysts polled by Thomson Reuters expected a loss of $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Dendreon, which develops therapeutics to treat cancer, reported quarterly revenues of $85.5 million, compared with $202 million a year ago.

Results for the prior year quarter included Dendreon's 125 million sale of its royalty interest related to intellectual property licensed to Schering-Plough Ltd. and Schering Corp. and associated with Victrelis.

Analysts on consensus estimated revenues of $82.88 million for the quarter.

Research and development costs for the quarter were higher at $19 million, compared with $17.7 million in the prior year.

Dendreon's strategic restructuring has been gaining pace. The company earlier sold its interest in Morris Plains, New Jersey facility to Novartis for $43 million. Dendreon said it expects to reduce cost of goods sold to below 50 percent of net product revenue in the beginning of the third quarter 2013.

The company also anticipates net benefits from restructuring initiatives to begin to appear in financial results as early as the first half of 2013.

Dendreon is trading at $5.94, up $0.27 or 4.76%, on a volume of 6.3 million shares.

by RTT Staff Writer

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