) announced preliminary results for the fourth quarter of 2013.
Dendreon's shares gained more than 9% on the announcement.
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Q4 2013 Preliminary Results
Dendreon expects to generate net product revenues of around $74.8
million, up 10.1% on a sequential basis. Expected net product
revenues were however down 12.5% from the year-ago figure.
Dendreon records revenues primarily from its sole marketed,
Provenge. Provenge, a therapeutic vaccine, was launched in the
U.S. in May 2010, for treating advanced prostate cancer.
Dendreon experienced strong growth in community accounts.
Dendreon recorded 19% and 2% overall sequential growth in
community urology and community oncology accounts, respectively.
Community accounts accounted for 72% of total sales compared with
71% in the year-ago period. The company added 31 net new accounts
for Provenge during the quarter.
The company during the third quarter earnings release on Nov 12,
2013, had revealed yet another restructuring initiative to reduce
costs further. Dendreon expects to realize net benefits from the
restructuring initiatives from the first quarter of 2014. The
company also intends to slow down its cash burn in the coming
Although Provenge sales have improved sequentially this quarter,
the drug has performed below expectations since its launch
primarily due to the entrance of
Johnson & Johnson's
) Zytiga in the prostate cancer market in the second quarter of
2011. We still believe the successful commercialization of
Provenge is crucial for the financial performance of Dendreon in
the long run. We are also concerned about Dendreon's high
dependence on Provenge for long-term growth.
Dendreon currently carries a Zacks Rank #2 (Buy). Some
better-ranked stocks include
). All these stocks hold a Zacks Rank #1 (Strong Buy).