Dendreon Scraps Sales Forecast on Slow Prostate Drug Sales; Shares Plunge

Quote: Dendreon Corp. (DNDN) withdrew its sales estimates for 2011, saying the use of the prostate cancer drug Provenge isn’t growing as fast as anticipated. Shares plunged more than 60 percent in extended trading. Seattle, previously estimated revenue of $350 million to $400 million during the year. The company still believes the market size for Provenge is substantial, though it expects modest increases in sales each quarter for the remainder of the year, Chief Executive Officer Mitchell Gold said today in a statement. ruling in June saying the $93,000 treatment is “reasonable and necessary” for men with advanced, prostate tumors resistant to hormone therapy who have minimal or no symptoms. The agency’s decision “will have a significant impact on increased physician adoption,” Gold said in the statement. “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.” Dendreon dropped $21.92, or 61 percent, to $13.92 at 6:35 p.m. New York time in extended trading on the Nasdaq Stock Market after gaining 2.5 percent to close at $35.84 before the company’s announcement. Shares had gained 2.6 percent this year. New Production Los Angeles and Atlanta. Instead, the company will reduce its expenses and eliminate positions to meet the lower demand for the product, Gold said. The company didn’t specify how many jobs would be lost. Dendreon reported a second-quarter loss of 79 cents per share, greater than the 71 cents average estimate of 20 analysts surveyed by Bloomberg. Sales of Provenge were $49.6 million, short of the $57.7 million analysts expected. Robert W. BairdChicago, in a note to investors today. The previous estimate assumed sales of Provenge would double in the third and fourth quarters, he said. “Depending on t...
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