Dendreon Loss Widens, But Revenue Tops Street; Stock Up - Update

(RTTNews) - Dendreon Corp. (DNDN), a biotechnology firm focused on cancer treatments, Monday reported a wider loss for the fourth quarter, hurt by lower revenue and one-time expenses. However, revenue for the quarter topped Wall Street estimates.

The company expects first-quarter revenue to be consistent with the prior-year results. Dendreon also indicated being on track in its restructuring and cost reduction plans.

Also Dendreon plans to make prostate cancer drug Provenge (sipuleucel-T) available in Europe, beginning with Germany and the United Kingdom. Provenge is Dendreon's first drug and was approved in the U.S. in April 2010 and in the EU in September 2013.

Dendreon shares are up 15 percent in morning trade on the Nasdaq.

Seattle, Washington-based Dendreon posted fourth-quarter net loss of $88.7 million or $0.58 per share versus a loss of $38.7 million or $0.26 per share last year.

Results for the recent quarter included $40 million loss on inventory impairment, while the prior year included restructuring and other charges of $36 million.

Excluding items, adjusted loss for the quarter was $25.4 million or $0.17 per share, compared with a loss of $45 million or $0.30 per share a year ago.

On average, 20 analysts polled by Thomson Reuters expected a loss of $0.38 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenue for the fourth quarter was lower at $74.8 million, compared with $81.6 million last year. Twenty-one analysts had a consensus revenue estimate of $73.6 million for the quarter.

Dendreon said the recent quarter benefited from oncology accounts as well as improvements in urology and academic accounts. The company said it has a new commercial model and has identified additional efforts to improve commercial effectiveness.

As of December 2013, Dendreon had about $199.4 million in cash, cash equivalents, and short-term and long-term investments, compared with $429.8 million in the prior year.

Dendreon stock is trading at $3.34, up $0.46 or 15.97%, on a volume of 16.6 million shares.