Dendreon Q3 Loss Narrows; Files For Bankruptcy

(RTTNews) - Biotechnology company Dendreon Corp. (DNDN) reported Monday a net loss for the third quarter that narrowed from last year, reflecting lower operating expenses and revenue growth. Loss per share for the quarter also came in narrower than analysts' expectations, while quarterly revenues missed their estimates.

Earlier in the day, the company and its wholly owned subsidiaries Dendreon Holdings, LLC, Dendreon Distribution, LLC and Dendreon Manufacturing, LLC filed for voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.

However, the company noted that there will be continued delivery of Provenge (sipuleucel-T) without disruption and the filing will not impact access for providers and appropriate patients in need of the personalized immunotherapy treatment.

Dendreon's first product 'Provenge' was approved by the U.S. Food and Drug Administration in April 2010, as the world's first autologous cellular immunotherapy for the treatment of prostate cancer.

"Whether the restructuring takes the form of a stand-alone recapitalization or a sale of the Company or its assets, we are confident that this process will allow PROVENGE to remain commercially available to the patients and providers who have come to rely on this revolutionary personalized cancer immunotherapy," President and CEO Thomas Amick said in a statement.

Following the announcement, the company's shares are plummeting nearly 65 percent in pre-market deals. The Seattle, Washington-based developer of therapeutics for cancer treatment posted a net loss of $22.07 million or $0.14 per share for the third quarter, sharply narrower than $67.22 million or $0.44 per share in the prior-year quarter.

On average, 13 analysts polled by Thomson Reuters expected the company to report a loss of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased to $73.12 million from $68.0 million in the same quarter last year, but missed eleven Wall Street analysts' consensus estimate of $75.27 million.

Loss from operations sharply narrowed to $8.73 million from $53.91 million, as total operating expenses declined to $81.85 million from $121.91 million last year.

DNDN closed Friday's regular trading session at $0.94, up $0.14 on a volume of 2.31 million shares.