Dendreon jumps on stronger 3Q Provenge sales
The Associated Press
Dendreon said Friday that revenue from its prostate cancer therapy Provenge grew 27 percent in the third quarter. The news pushed the Seattle company’s stock higher.
Provenge was approved to great fanfare 2 1/2 years ago, but sales have fallen short of Dendreon’s and Wall Street’s expectations. Revenue from the drug totaled $77.9 million in the third quarter, up 27 percent from a year ago but down slightly compared to the second quarter of 2012. However Dendreon said revenue from community oncologists stabilized, and after announcing a large restructuring plan in July, the company did not report any new problems.
Shares of Dendreon closed up 62 cents, or 16.1 percent, to $4.47 Friday.
The company took a bigger loss in the third quarter because of the costs associated with job cuts and other restructuring. It reported a loss of $154.9 million, or $1.04 per share, up from $147.1 million, or $1 per share, a year ago. Total revenue increased 21 percent, to $78 million from $64.3 million.
Analysts expected a loss of 80 cents per share and $81.1 million in revenue, according to FactSet.
Dendreon said its restructuring, job termination, and asset impairment costs more than doubled to $81 million. The company’s research costs declined from last year, and its sales costs decreased 20 percent.
In July, Dendreon said it would eliminate 600 jobs, close a manufacturing plant and reorganize some administrative work as part of a plan to eliminate $150 million in annual spending.
Provenge received marketing approval in April 2010. It is a therapy designed to train a patient’s immune system to fight prostate cancer, and a round of treatments cost $93,000 when the drug was released. Analysts expected annual sales to rise to $1 billion per year, but sales in the first three quarters of 2012 have totaled about $240 million.
Shares of Dendreon have lost 37.7 percent of their value since the company reported its second-quarter results July 30.