After reporting a slight decrease in Provegene sales, Dendreon announced a restructuring, and closure of its New Jersey manufacturing site. Shutdown of the Morris Plains plant will result in a loss of 600 jobs.
Provenge sales were $80 million in the second quarter, down from $82 million in the first quarter due to sales force turnover and cancelation of infusions, according to Leerink Swann.
The company hopes to reduce costs by approximately $150 million annually as a result of the restructuring. Provenge manufacturing will be handled by the company’s existing facilities in Union City, Georgia, and Seal Beach, California.
“We are confident in the long-term opportunities for Provenge,” said John H. Johnson, chairman, president, and CEO. “We believe the strategic restructuring plan announced today will accelerate our path to profitability and future growth as we execute on our core mission of providing Provenge to patients around the world. By re-configuring our manufacturing model, strengthening our commercial organization and lowering our overall cost structure, we believe we can deliver value to our shareholders and our physician customers and their patients.”