2nd UPDATE: Dendreon Says Provenge Launch, Filing On Track
September 24 2009 - 11:51AM
Dow Jones News
Dendreon Corp. (DNDN) told Wall Street that its regulatory and
launch plans for prostate cancer treatment Provenge, assuming its
gets approved, remain on track as it plans for regulatory
review.
The Seattle drug maker expects to file for marketing approval
for Provenge in mid-November and hopes to get a regulatory decision
in the middle of next year, it told Wall Street analysts Thursday.
Although it didn't provide projections, Dendreon said Provenge's
launch will occur as production capacity becomes available,
supporting $1.2 billion to $2.5 billion in annual revenue after all
of its manufacturing facilities come on line in 2011.
Dendreon shares recently traded down 3.8% to $27.21, after being
down as much as 11%.
Production will begin at a New Jersey facility that will
initially operate at 25%, bringing up to $60 million to $125
million in revenue in the six months after launch.
Leerink Swann recently projected U.S. Provenge revenue of $1.6
billion for 2014.
Dendreon expects that first facility to be fully functional in
the first half of 2011 and operations in Atlanta and Los Angeles to
be available in the second half of that year.
In preparing for launch, the company expects to spend $150
million in 2009 and end the year with $200 million in cash. It
currently has about 290 workers and plans to double that by the
time the drug launches.
Dendreon expects to sell the drug in the U.S. while finding a
partner for overseas markets, a plan that the company reiterated
Thursday. It said it is in the process of hiring a chief operating
officer that has "deep commercial experience."
In April, Dendreon reported Provenge successfully prolonged
patients' lives, which could make it the first immunotherapy
approved for cancer. The share price is up more than threefold
since that data was reported.
Provenge uses a patient's own cells to prompt the body to fight
the disease, leading many to call it a vaccine.
Dendreon had previously expected to file an amendment to its
previously rejected marketing application by year-end. An FDA
advisory recommended the approval of Provenge in 2007, but the
agency requested more data.
Although Dendreon's data were performed under a special protocol
assessment, the company still must get a cautious FDA's approval in
bringing an entirely new type of therapy to the market, including
the resolution of manufacturing questions.
Unlike making a pill, Provenge's production involves taking a
patient's cells, shipping them to the company for processing, then
returning them to a physician to be delivered via intravenous
infusion. This entire process must be performed three times over
four weeks.
The company said that it recently signed an agreement with the
American Red Cross for patients to use the organization's cell
collection, or apharesis, centers so that the needed cells can then
be shipped to Dendreon's production facilities.
In transporting the product, the company will use a third-party
service to transport the cells to its manufacturing facilities
within 18 hours.
Dendreon will provide a tracking system, similar to that used by
major shipping carriers, that allows patients and physicians to
follow the progress of their cells in the process.
Although the company essentially froze its development of other
products as the Provenge trial was being completed, it is now
planning to study Provenge's effectiveness in earlier stages of
prostate cancer, as well as the possibility of providing patients
with a booster after their initial treatment.
The company expects to have one new immunotherapy in clinical
trials every year for the next three years, beginning with
beginning a study of Neuvenge in bladder cancer in late 2010 or
early 2011.
The company expects to study Neuvenge in other cancers and has
other cancer treatments in early development.
-By Thomas Gryta, Dow Jones Newswires; 212-416-2169;
thomas.gryta@dowjones.com