Dendreon (DNDN) Posts Narrower than Expected Q2 Loss; Withdraws PROVENGE Guidance
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Dendreon Corp (NASDAQ: DNDN) reported Q2 loss of ($0.57), $0.14 better than the analyst estimate of ($0.71). Revenue for the quarter came in at $49.6 million versus the consensus estimate of $58.58 million.
The Company expects to reduce expenses, including workforce reductions, to align with its near-term manufacturing requirements.
"We believe the market potential for PROVENGE is substantial, and the primary issue affecting the dynamics of our launch is the reimbursement knowledge around PROVENGE. We anticipate the positive National Coverage Determination (NCD) and Q-code will have a significant impact on increased physician adoption. However, we believe this will take time, and for the remainder of 2011, the launch trajectory will reflect a more gradual adoption of PROVENGE as physicians gain confidence in this positive reimbursement landscape," said Mitchell Gold, MD, president and CEO. "With the number of infusion sites increasing substantially, our principal objective continues to be ensuring all eligible patients have access to PROVENGE."
Dendreon expects that adoption of the new reimbursement paradigm will take time. Accordingly, Dendreon is withdrawing its previous guidance of $350-400 million in revenue for 2011 and currently expects modest quarter over quarter revenue growth for the remainder of this year.
The Company expects to reduce expenses, including workforce reductions, to align with its near-term manufacturing requirements.
"We believe the market potential for PROVENGE is substantial, and the primary issue affecting the dynamics of our launch is the reimbursement knowledge around PROVENGE. We anticipate the positive National Coverage Determination (NCD) and Q-code will have a significant impact on increased physician adoption. However, we believe this will take time, and for the remainder of 2011, the launch trajectory will reflect a more gradual adoption of PROVENGE as physicians gain confidence in this positive reimbursement landscape," said Mitchell Gold, MD, president and CEO. "With the number of infusion sites increasing substantially, our principal objective continues to be ensuring all eligible patients have access to PROVENGE."
Dendreon expects that adoption of the new reimbursement paradigm will take time. Accordingly, Dendreon is withdrawing its previous guidance of $350-400 million in revenue for 2011 and currently expects modest quarter over quarter revenue growth for the remainder of this year.
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