Company: Dendreon
Based: Seattle
Themes: Provenge manufacturing in New Jersey

Last fall Dendreon ($DNDN) laid off 500 workers, when it first became apparent that Provenge was not the big success  it was expected to be. Then, this summer, new management opted to trim another 600 staffers and contractors as it shuttered a factory in New Jersey. The company was satisfied that it had more than enough capacity to produce the complex prostate cancer vaccine, which has delivered disappointing results.

Dendreon achieved a true breakthrough when it persevered in its quest for a Provenge approval. But physicians and patients alike balked at the $93,000 price tag and limited average survival gains. Then Johnson & Johnson ($JNJ) and Medivation ($MDVN) followed up with new prostate cancer drugs of their own--getting good buzz about the relative benefits.

Once it completes the cuts, Dendreon believes that it can be profitable with $100 million in revenue per quarter from Provenge. But there's no precise timetable proposing when that could happen. In the second quarter Dendreon reported $80 million in Provenge sales, down slightly from the previous quarter. That's not the right direction.

For more:
Dendreon shares plunge as new CEO brings out the ax (again)
Dendreon to slash 600 more jobs as Provenge sales lag
What will Dendreon's new chief do about Provenge?
Dendreon demonstrates tougher commercialization hurdles for developers
Dendreon cuts deep into work force to conserve cash


Suggested Articles

Acceleron’s sotatercept outdid placebo at reducing pulmonary vascular resistance in patients with pulmonary arterial hypertension.

China’s Biotheus picked up the rights to Tilt Biotherapeutics’ lead oncolytic virus program in greater China.

A Cedars-Sinai team used stem cells to uncover a key mechanism of young onset Parkinson's, as well as a potential remedy—an existing skin treatment.