DNDN dijo que sus ventas estaban creciendo menos de lo que anticipaban, debido a que los doctores no se sienten a gusto con la idea de esperar el reembolso por una droga tan cara. El tratamiento cuesta $93,000. La accion se desplomo 62%
Setback for Dendreon Cancer Drug
By THOMAS GRYTA
Dendreon Corp. said sales of its prostate cancer drug Provenge are growing slower than expected because doctors aren't comfortable with the complex task of getting reimbursed for the expensive treatment.
As a result, the Seattle drug maker withdrew its sales expectations for the year and announced plans to cut jobs. Shares of Dendreon fell 62% to $13.66 in after-hours trading Wednesday on the Nasdaq Stock Market.
Provenge, approved in April 2010, uses a patient's own cells to stimulate the body's immune system to fight prostate cancer. The treatment costs $93,000 for a standard course, and delayed reimbursement can cause cash flow management issues at physician practices.
Chief Executive Mitchell Gold said Wednesday that the launch of the drug will have a "more gradual trajectory" than previously expected because of "reimbursement knowledge" related to the drug. That means that the process of getting reimbursed is difficult enough for doctors that it is discouraging use of the treatment.
Until now, the company had been working to increase its manufacturing capacity in order to meet U.S. patient demand. As recently as May, Dendreon projected full year revenue of $350 million to $400 million, but now sees only "modest" sequential quarterly growth above its second-quarter revenue of $49.6 million.
The company didn't see the problems until now, Dr. Gold said Wednesday, because initial manufacturing constraints didn't allow the company to realize fully the reimbursement problems until more supply was available.
The company still expects Provenge's use will increase over time, citing the recent Medicare decision to cover the drug and the issuance of an electronic code that will make it simpler and faster for physicians to get paid for using the drug on Medicare patients. Nonetheless, in light of the new expectations, Dendreon plans to cut costs, including job cuts, to be consistent with its "near-term manufacturing requirements."
Provenge, the first immunotherapy for prostate cancer to gain U.S. regulatory approval, has been shown to extend patient survival by a median of about four months. Some health-policy experts, though, have questioned paying so much for a drug that may lengthen life for a relatively short time.
For the three months ended June 30, the company reported a loss of $114.6 million, or 79 cents a share, compared to a loss of $142.6 million, or $1.04 a share last year. Excluding items, the company reported a loss of 57 cents a share, which was narrower than Wall Street expectations of 71 cents a share, according to Thomson Reuters.
Revenue rose to $49.6 million from $2.8 million a year ago, falling short of analyst expectations of $57.7 million.
At the end of June, Dendreon had $673.9 million in cash, cash equivalents and investments, compared to $277.3 million at the end of 2010.
Corrections & Amplifications
Shares of Dendreon fell 62% to $13.66 in after-hours trading Wednesday on the Nasdaq Stock Market. An earlier version of this article incorrectly said the shares fell 62% in after-hours trading Thursday.
Write to Thomas Gryta at thomas.gryta@dowjones.com