Monday, August 11, 2014

Dendreon Reports Second Quarter 2014 Results $DNDN

More about the 2016 note maturity,

"Our 2016 Notes, as discussed in Note 10 below, have an aggregate principal amount of $620 million and mature on January 15, 2016. Our stock price is well below the $51.24 effective conversion price for the 2016 Notes, making it unlikely that the holders of the 2016 Notes will exercise their conversion right. As a result, we assume that, absent the execution of a transaction of the type described below, we will be required under the terms of the 2016 Notes to repay the full $620 million principal amount at maturity. Based on our currently anticipated operating results, however, and even assuming the realization of future expense reductions that we plan to make and product revenues that we forecast, there is a significant risk that, while we believe we have sufficient cash to meet our ordinary course obligations for at least the next twelve months, we will not be able to repay or refinance the 2016 Notes. Accordingly, we are currently considering alternatives to the repayment of the 2016 Notes in cash, including alternatives that could result in leaving our current stockholders with little or no financial ownership of Dendreon. Our Board of Directors will consider any strategic alternatives that might be presented by third parties, though there can be no guarantee that any such alternative will provide value for the Company’s stockholders."
A correspondent noticed, "they raised prices pretty significantly - probably an indication that business wasn’t sustainable with cost structure without better pricing":
"Net product revenue from the commercial sale of PROVENGE was $82.2 million and $150.9 million for the three and six months ended June 30, 2014, respectively, and $73.3 million and $140.9 million for the three and six month ended June 30, 2013, respectively. Of this increase in net product revenue for the six months ended June 30, 2014, approximately $6.5 million resulted from price increases and approximately $3.6 million resulted from volume increases. Approximately 970 parent accounts, some of which have multiple sites, had infused our product as of June 30, 2014."

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