Dendreon downsizes due to drop in vaccine sales
Written by Alyssa Clark
This company has been on the horizon of the medical field for some time now, with its revolutionary research in the potential of cancer vaccinations; however, the sales for Provenge has yet to take off because of its manufacturing capacity and inconsistency with reimbursements. The leading biotechnology company Dendreon Corp recently stated that it is going to reduce costs by $125 million and cut 150 jobs in a recent attempt at restricting— in hopes of finally raising sales of its pioneer cancer vaccination.
Provenge sales fell 13 percent this past third quarter, which affected the net product revenue dramatically, dropping the total down to $68 million in September of this year.
"It appears clearly that competition continues to affect the sales of Provenge ..." Wedbush Securities Inc analyst David Nierengarten said.
The current restructuring is not radical enough to address concerns about weak sales, he said, adding that the current restructuring effort is just "too little and too late."
Costs are high and the use of Provenge’s competition is at an all-time-high, with drugs like Medivation Inc.’s Xtandi, and Johnson & Johnson’s Zytiga standing as the go-to’s for those in this related field.
Dendreon was forced to close its New Jersey manufacturing facility in a desperate restructuring movement last July, and cut 600 jobs along with it in hopes of saving $150 million annually. The company has yet to comment on whether there will be a need to close any more of its plants in the upcoming quarter. The most recent plans for restructuring and cost-saving is said to lower expenses by at least 20 percent, and will have around 820 employees after restructuring (down more than 2,000 from its peak employment time).
The cost for the restricting with be around $7.5 million in the current quarter, and first quarter alone. Dendreon’s net loss will be narrowed to $67.2 million which will equate to about 44 cents per share. Whereas a year ago, share prices remained strong at $1.04 per share and a net total of $154.9 million annually.
About the Author
Alyssa Clark is the Editor of Healthcare Global
Schneider Electric's intelligent patient room: need to know
Schneider Electric has launched a virtual showcase that features its new "intelligent patient room". What is it exactly?
Who: Schneider Electric is a multinational that develops energy and automation solutions for many different industries - including hospitality, education, defence, and healthcare. Founded in 1836, today it is a Fortune 500 company, and it currently provides technology to 40% of hospitals around the world, among them Penn Medicine, one of the top hospitals in the US where Schneider's EcoStruxure for Healthcare is deployed, an IoT solution.
What: Schneider has launched its Innovation Experience Live Healthcare Lab, an immersive experience that takes visitors through a demonstration of a hospital, including the doctor’s office, the operating room, and the intelligent patient room.
The room features a digital patient footwall - a touchscreen that creates a single reference point for patients, families and healthcare providers, by incorporating care information, entertainment and environmental controls all in one place. A separate digital patient door display has important information for healthcare staff.
All Schneider's equipment is low-voltage, and integrated so that the patient room, clinical needs and IT are all seamlessly connected, what Schneider calls a digital “system of systems.”
Why: Mike Sanders, Customer Projects & Services in Healthcare Innovation at Schneider Electric, explains: “The hospital of the future will need to put the patient experience at the forefront, using innovative and connected systems to provide superior in-hospital care experiences.”
“With the shift to remote work and business brought forth by the pandemic, we knew that we needed to invest in a new virtual experience that showcases our vision for a truly integrated healthcare experience. We believe our intelligent patient room is the solution that our healthcare partners and customers have been looking for, and we’re excited to offer a way for them to experience it no matter where they are in the world.”
Where: The virtual experience was modelled after the new innovations installed at Penn Medicine in Philadelphia, the first real-world installation of Schneider Electric’s fully integrated intelligent patient room technology. It is currently being hosted at the company’s St. Louis Innovation Hub and Innovation Executive Briefing Center (IEBC) facility.