Dendreon Up on Prelim Q4 Results - Analyst Blog


Dendreon Corporation ( DNDN ) announced preliminary results for the fourth quarter of 2013. Dendreon's shares gained more than 9% on the announcement.

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 quarters.

Our Take

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 ( JNJ ) 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 Jazz Pharmaceuticals ( JAZZ ), Actelion Ltd. ( ALIOF ) and Gentium ( GENT ). All these stocks hold a Zacks Rank #1 (Strong Buy).


DENDREON CORP (DNDN): Free Stock Analysis Report

GENTIUM SPA-ADR (GENT): Free Stock Analysis Report

JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report

JOHNSON & JOHNS (JNJ): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ALIOF , DNDN , GENT , JAZZ , JNJ

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