Dendreon (DNDN $11.90 -23.94) reported a second quarter loss of
($0.57) per share, excluding non-recurring items, $0.11 better than the Capital
IQ Consensus Estimate of ($0.68).
Revenues rose 1671.4% year/year to $49.6 million versus the $58.2 mln consensus.
The company said, "We believe the market potential for PROVENGE is substantial,
and the primary issue affecting the dynamics of our launch is the reimbursement
knowledge around PROVENGE. We anticipate the positive National Coverage
Determination (NCD) and Q-code will have a significant impact on increased
physician adoption. 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 expects that adoption of the new reimbursement paradigm will take time.
Accordingly, Dendreon is withdrawing its previous guidance of $350-400 million
in revenue for 2011 and currently expects modest quarter over quarter revenue
growth for the remainder of this year. The Company expects to reduce expenses,
including workforce reductions, to align with its near-term manufacturing
requirements.






