In the latest round of layoffs, Dendron plans to save $125 million in operating expenses by cutting its headcount by 15%. Around 150 full-time employees are set to lose their jobs over the next nine months as Dendreon cuts its R&D and marketing budgets in a bid to achieve profitability.
Dendreon is again turning to manufacturing, along with slashing more jobs, in its effort to claw its way to profitability. The drugmaker sold a plant last year to save money and raise some cash but will now invest in manufacturing in hopes that production improvements will reduce operation costs.
Troubled Dendreon is again cutting its payroll, planning to shed about 200 employees in an effort to water down its cash burn rate and finally turn a profit. But, with a disappointing prostate cancer drug and a dim outlook for the future, the Seattle drugmaker may need more than lighter books to reverse its fortunes or find an acquirer.
In August, a Wall Street analyst placed a headline-grabbing $0 price target on the stock of struggling cancer vaccine manufacturer Dendreon. Now, Dendreon has reportedly hired JP Morgan Chase to find someone who sees more value in the company and is willing to back their belief by acquiring the business.
Dutch CMO PharmaCell has inked a deal with the struggling Dendreon to manufacture its prostate cancer drug Provenge in Europe.
Wedbush Securities' David Nierengarten's forecast on Dendreon shares? $0. As in bankrupt.
The miss means Dendreon now expects to fail to achieve its modest goal of growing sales year-on-year.
In the two years since cancer vaccine maker Dendreon sent its share price into a precipitous decline by pulling the forecast on its debut drug, Provenge, bad news has mounted up. Weak sales drove shares down 30% last year, and the slide has continued in 2013.
Biotech Dendreon, the maker of prostate cancer vaccine Provenge, continues to struggle with earnings even after undertaking a restructuring program which included unloading one of its manufacturing plants.
ISI Group's Mark Schoenebaum has been one of the few optimists when it comes to the biotech's struggle to sell Provenge. But even Schoenebaum couldn't stay upbeat in the face of Dendreon's first-quarter numbers for Provenge, which has proved a tough sell in the prostate cancer market. And Schoenebaum responded with a remarkable mea culpa for a Wall Street analyst. Read more >>