Dendreon to Restructure

Dendreon Corp. has plans to restructure in an effort to reduce costs after posting weak 3Q13 sales of its prostate cancer vaccine, Provenge. Revenues fell 13% to $68 million in the quarter and net loss narrowed to $67.2 million from $154.9 million in 3Q12. Limited manufacturing capacity and uncertainty over reimbursements have impacted Provenge sales, in addition to the high cost of the vaccine, which is tailor-made for each patient, and the emergence of newer drugs.

The company’s restructuring program aims to save more than $125 million, representing a 20% cut in costs, and will eliminate about 820 of its 2,000 employees.

“We are restructuring the company and implementing additional cost reductions to enable Dendreon to succeed as a leaner, more nimble biotechnology company focused in immuno-oncology,” said chief executive officer, John Johnson.