Nov 12 Biotechnology company Dendreon Corp
said it would restructure to cut costs after reporting
another quarter of weak sales of its prostate cancer vaccine,
Net product revenue, reflecting Provenge sales, fell 13
percent to $68 million in the third quarter, short of analysts'
average estimate of $76.3 million, according to Thomson Reuters
Dendreon is watched closely due to the immense potential of
cancer vaccines, but Provenge sales have never really taken off
due to limited manufacturing capacity and uncertainty over
The high cost of the vaccine, which is tailor-made for each
patient, and the emergence of newer drugs have also been a
The drugmaker said on Tuesday it will begin a restructuring
program to save more than $125 million, representing a 20
percent cut in costs, and expects the benefits to kick in in the
"...we are restructuring the company and implementing
additional cost reductions to enable Dendreon to succeed as a
leaner, more nimble biotechnology company focused in
immuno-oncology," Chief Executive John Johnson said.
Dendreon said it will have about 820 employees at the end of
the plan, down from more than 2,000 at its peak.
Net loss narrowed to $67.2 million, or 44 cents per share,
in the quarter from $154.9 million, or $1.04 per share, a year
Analysts were expecting a loss of 42 cents per share.
Shares of the company were up about 2.5 percent at $2.56 in
pre-market trade. They closed at $2.50 on Monday on the Nasdaq.