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Originally published November 12, 2013 at 7:00 AM | Page modified November 12, 2013 at 10:12 PM

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Dendreon will cut 150 jobs, pare $125M in spending

Prostate cancer therapy maker Dendreon said Tuesday that sales fell in the third quarter, and announced plan to eliminate about 150 jobs and cut $125 million in annual spending.


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NEW YORK —

Prostate cancer therapy maker Dendreon said Tuesday that sales fell in the third quarter, and announced plan to eliminate about 150 jobs and cut $125 million in annual spending.

The cost cuts come in the wake of disappointing sales of Dendreon Corp.'s Provenge therapy. On Tuesday, the company said it plans to cut spending by 20 percent compared with 2013, including trims to all expense categories.

The reductions are planned despite an uptick during the past two months, and follow a larger round of cuts last year. In 2012, Dendreon eliminated 600 jobs, closed a manufacturing plant and reorganized some administrative work as part of a plan to eliminate $150 million in annual spending. In the first nine months of this year, operating expenses are down more than 32 percent.

The company said it will notify employees about the latest job cuts this week and said it will have 820 employees after the cuts are made. Dendreon will take around $7.5 million in charges related to the moves.

The Seattle company revealed the plan as it posted a loss of $67.2 million, or 44 cents per share, for the three months ended Sept. 30. In the 2012 third quarter, it lost $154.9 million, or $1.04 per share, due mainly to costs related to the earlier job cuts and restructuring.

Revenue fell 13 percent, to $68 million from $78 million.

FactSet says analysts expected a loss of 41 cents per share and $76.4 million in revenue.

The Seattle company said its business has gotten stronger in the last two months, and more patients signed up for treatment in October than in any other month in 2013.

Shares of Dendreon gained 19 cents, or 7.6 percent, to $2.69 in morning trading. The stock is down more than 50 percent since the start of the year.



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