Dendreon Reports Fourth Quarter and 2009 Year End Financial Results

SEATTLE, Feb. 22 /PRNewswire-FirstCall/ -- Dendreon Corporation (Nasdaq: DNDN) today reported results for the year and quarter ended December 31, 2009. Revenue for the year ended December 31, 2009 was $101,000 compared to $111,000 for year ended December 31, 2008.  Revenue for the fourth quarter of 2009 was $21,000 compared to $28,000 for the quarter ended December 31, 2008.

The net loss for the year ended December 31, 2009 was $220.2 million, or $2.04 per share, compared to $71.6 million, or $0.79 per share for the year ended December 31, 2008. This loss includes a non-cash fair value adjustment of $118.8 million or $1.10 per share associated with a change in the fair value of our warrants The size of this re-measurement is directly related to the price increase our common stock experienced this year.  Net loss in the fourth quarter of 2009 was $32.5 million or $0.28 per share, compared to a net loss of $8.8 million, or $0.09 per share, for the same period in 2008. Dendreon's total operating expenses for the year ended December 31, 2009 were $100.1 million compared to $70.6 million in 2008.

As of December 31, 2009, Dendreon had approximately $606 million in cash, cash equivalents, and short-term and long-term investments compared to $111 million as of December 31, 2008.

Recent Highlights:

• Submitted an amended Biologics License Application (BLA) for PROVENGE® (sipuleucel-T) for which the U.S. Food and Drug Administration (FDA) assigned a Prescription Drug User Fee Act (PDUFA) date of May 1, 2010.
• Raised $409.5 million in net proceeds through a common stock offering in the fourth quarter 2009, bringing the total net funds raised for the year to approximately $630 million, allowing the Company to accelerate the build out of the Atlanta, Georgia and Orange County, California commercial manufacturing facilities, which we expect will become operational in mid-2011.
• Hired Hans Bishop as chief operating officer. Hans was most recently president of the specialty medicine business at Bayer and executive vice president of Bayer Healthcare LLC.
• Elected Ian Clark, chief executive officer and head of North American commercial operations at Genentech, and Pedro Granadillo, former senior vice president of global manufacturing and human resources at Eli Lilly & Company, to Board of Directors.

"The positive results from our IMPACT study of PROVENGE made 2009 a momentous year for Dendreon and its stockholders as we initiated the transition to a commercial enterprise to serve patients with late-stage prostate cancer," said Mitchell H. Gold, M.D., president and chief executive officer.  "To continue this transformation in 2010, we are investing in our commercial and manufacturing infrastructure to support the launch of PROVENGE pending FDA approval."

Conference Call Information

Dendreon will host a conference call today at 1:30 p.m. PT, 4:30 p.m. ET. To access the live call, dial 1-800-260-8140 (domestic) or +1-617-614-3672 (international); the conference ID number is 15732512. The call will also be audio webcast and will be available from the Company's website at www.dendreon.com under the "Investor/Webcasts and Presentations" section. A recorded rebroadcast will be available for interested parties unable to participate in the live conference call by dialing 1-888-286-8010 or +1-617-801-6888 for international callers; the conference ID number is 13123096. The replay will be available from 7:30 pm ET on Monday, February 22nd, until 11:59 pm ET on Monday, March 1st.  In addition, the webcast will be archived for on-demand listening for 30 days at www.dendreon.com.

About Dendreon
Dendreon Corporation is a biotechnology company whose mission is to target cancer and transform lives through the discovery, development and commercialization of novel therapeutics.  The Company applies its expertise in antigen identification, engineering and cell processing to produce ACI product candidates designed to stimulate an immune response.  Dendreon is also developing an orally-available small molecule that targets TRPM8 that could be applicable to multiple types of cancer as well as benign prostatic hyperplasia.  The Company has its headquarters in Seattle, Washington, and is traded on the Nasdaq Global Market under the symbol DNDN. For more information about the Company and its programs, visit www.dendreon.com.

This news release contains forward-looking statements that are subject to risks and uncertainties.  Factors that could affect these forward-looking statements include, but are not limited to, developments affecting Dendreon's business and prospects, including progress on the commercialization efforts for PROVENGE and requisite receipt of FDA licensure for marketing.  Information on the factors and risks that could affect Dendreon's business, financial condition and results of operations are contained in Dendreon's public disclosure filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. Dendreon cautions investors not to place undue reliance on the forward-looking statements contained in this press release. All forward-looking statements are based on information currently available to Dendreon on the date hereof, and Dendreon undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this press release, except as required by law.

    
                               DENDREON CORPORATION                       
                       CONSOLIDATED STATEMENTS OF OPERATIONS                  
                     (in thousands, except per share amounts)                 
                                                                              
                                     Three months ended    Twelve months ended
                                        December 31,           December 31, 
                                     ------------------    -------------------
                                     2009           2008      2009      2008 
                                     ----           ----      ----      ---- 
                                         (unaudited)                          
                                                                              
    Revenue                            $21           $28       $101      $111 
                                                                              
    Operating expenses:                                                       
        Research and                                                          
         development                19,974        10,755     61,586    50,086 
        General and                                                           
         administrative             16,430         4,783     38,556    20,503 
                                    ------         -----     ------    ------ 
    Total operating expenses        36,404        15,538    100,142    70,589 
                                    ------        ------    -------    ------ 
    Loss from operations           (36,383)      (15,510)  (100,041)  (70,478)
    Interest income                    239           712        964     3,619 
    Interest expense                  (390)       (1,161)    (2,321)   (5,156)
    Gain (Loss) from                                                          
     valuation of warrant                                                     
     liability                       4,025         7,122   (118,763)      371 
                                     -----         -----   --------       --- 
    Net loss                      ($32,509)      ($8,837) ($220,161) ($71,644)
                                  ========       =======  =========  ======== 
                                                                              
                                                                              
    Basic and diluted net                                                     
     loss per share                 ($0.28)       ($0.09)    ($2.04)   ($0.79)
                                    ======        ======     ======    ====== 
                                                                              
    Shares used in                                                            
     computation of basic and                                                 
     diluted net loss per                                                 
     share                         116,814        95,109    108,050    90,357 
                                   =======        ======    =======    ====== 
                                                                              
                                                                              
                                                                              
                                 December 31,  December 31,                   
                                    2009          2008                      
                                    ----          ----                      
    Balance Sheet Data:                                                       
    Cash and cash equivalents     $409,829       $59,523                      
    Short-term investments         167,116        45,638                      
    Long-term investments           29,441         5,416                      
    Prepaid antigen costs           18,975             -                      
    Total  assets                  735,415       147,204                      
    Warrant liability              132,953        14,190                      
    Convertible senior                                                        
     subordinated notes             52,535        85,250                      
    Total stockholders'                                                       
     equity                        503,564        27,006                      
    
    
    

SOURCE Dendreon Corporation