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Dendreon's scalded investors

Dendreon investors scalded on weak sales of Provenge for prostate cancer

Investors who held shares of Dendreon Corp. in the belief that the company would meet its projected $350-$400 million in 2011 sales of its prostate cancer immunotherapy were crushed by last week's news the company was abandoning its guidance and restructuring, at least temporarily.

Dendreon lost 66% of its market cap, from $5.4 billion to $1.8 billion, as the stock lost $24.34 to $12.56 following lower-than-expected 2Q sales of Provenge sipuleucel-T for prostate cancer: $51.4 million vs. analyst estimates of $58.6 million. Net sales after rebates were $49.6 million.

The company removed its revenue guidance and said it would reduce its workforce.

Sellside analysts slashed their models on the news, rather than simply pushing out their timelines as the company argued was occurring. "Really we just see this as a shift of the curve to the right," President and CEO Mitchell Gold said on the earnings call.

Four analysts cut peak annual sales estimates by an average of more than 50%, to $1.7 billion from $3.7 billion, with the peak year

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