Dendreon to lay off 600 employees following poor sales


Dendreon, the once high-flying Seattle biotech company, plans to lay off 600 employees following poor sales of Provenge. Here's the story from the Associated Press.:


SEATTLE (AP) — Biotech drugmaker Dendreon Corp. said Monday that it will cut about 600 jobs following disappointing sales of its expensive prostate cancer drug Provenge.

The company also will close its Morris Plains, NJ, manufacturing facility and reorganize administrative work as part of the plan to save the company $150 million annually. The cuts will affect full-time and part-time staff. They will take effect over the next year.

Dendreon said two remaining manufacturing sites in Union City, Ga., and Seal Beach, Calif., should be able to meet demand for Provenge production.

Provenge won U.S. approval in April 2010 and was the first drug designed to use the body's own immune system to fight cancer. Regulators approved the drug for prostate cancer that has not responded to other treatments. Analysts once expected sales to reach $1 billion per year, but sales have not matched those expectations. Analysts have blamed the drug's time-consuming production process, which takes several weeks, not to mention its $93,000 price tag.

"This restructuring sets a new course forward for Dendreon, accelerating our path to profitability and future growth," said CEO John H. Johnson.

The announcement came as the company reported second quarter earnings that missed Wall Street's forecast.

Dendreon posted a net loss of $96.1 million, or 65 cents per share, compared to a loss of $116 million, or 79 cents per share, in the second quarter of 2011. Sales of Provenge, the company's only marketed product, were nearly $80 million, up from $48 million a year ago.

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Analysts polled by FactSet expected a loss of 60 cents per share on sales of $85.2 million.

Analysts have speculated that Provenge could soon be eclipsed by two newer competitors: Johnson & Johnson's drug Zytiga and by Medivation Inc. and Astellas Pharma's drug candidate MDV3100.

Shares of Dendreon Corp. fell 6 cents to close at $6.18. The company's earnings and reorganizing plans were announced after the market closed. Trading in Dendreon shares was halted.

2016 Tech Impact Awards: Tech Impact Champion

2016 Tech Impact Awards: Tech Impact Champion

Congratulations, Ed Lazowska!

Ed Lazowska, Ph.D.
Bill & Melinda Gates Chair in Computer Science & Engineering, University of Washington

When Ed Lazowska arrived in Seattle 39 years ago as an assistant professor, both the University of Washington and the region were very different places. In computer science, he was the newest of only 13 faculty members. The region’s tech industry largely consisted of Boeing, Fluke and Physio-Control. Microsoft at the time was still a dozen people in Albuquerque. 
Today, the UW’s Computer Science & Engineering Department rivals Stanford’s and Carnegie Mellon’s for attracting tech talent and major research — accomplishments that Lazowska helped bring about. As the university’s department chair, his effort to recruit leading data scientists included personally reaching out to Amazon CEO Jeff Bezos, who provided $2 million from Amazon to endow two professorships and personally met with researchers. A decade after leading fundraising to build the Paul G. Allen Center for Computer Science & Engineering, he is doing so again to build a new CSE facility that will help double the center’s capacity.
“Our job,” Lazowksa asserts, “is to provide socioeconomic mobility for bright kids in this region.”
Driving opportunities through research remains his passion, as his own studies in high-performance computing, multicomputer processing and big data science have proved. An early technical adviser on the formation of Microsoft Research and a member of two national advisory committees on science and technology policy, he has promoted private and public investment in “engineering things that one day in the future will be used in game-changing products.”
Lazowska believes big data and cloud computing “lie at the heart of 21st century discovery.” He helped found and now leads the UW’s eScience Institute, a cross-campus partnership that helps scholars in fields such as astronomy, biology and sociology take advantage of data analytics to enhance their research. Given the region’s far-reaching cloud expertise, Lazowska says, “This is an area that Seattle has the potential to own.”
Lazowska’s other initiatives include promoting K-12 STEM education and gender diversity in the UW program. He champions the notion that all students should study computer science to cultivate the “computational thinking” skills needed for the new century.
Lazowska marvels at the region’s transformation into a place “with distinctive and innovative activities in the broadest range of areas.” With his trademark enthusiasm for the UW and the local tech sector, this celebrated educator, researcher, adviser and booster has played an important role in that transformation.
Previous Tech Impact Champions
Tech Impact Champions are chosen not only for their achievements in technology but also for championing the region’s broader tech sector. Past inductees in Seattle Business magazine’s Hall of Technology Champions, previously called Lifetime Achievement Award honorees, are:
  2012: John McAdams, former CEO, F5 Networks
  2013: Jeremy Jaech, cofounder, Aldus and Visio, and chair emeritus, the Technology Alliance
  2014: Steve Ballmer, former CEO, Microsoft
  2015: Tom Alberg, cofounder, Madrona Venture Group