Money-losing biotech Dendreon Corp said it would close one of its three manufacturing plants and cut more than 600 full-time and contractor jobs over the next 12 months, with the aim of reducing annual costs by about $150 million a year.
Dendreon had about 1,475 employees as of February 23, 2012, according to a regulatory filing.
The company, whose Provenge treatment for prostate cancer has had disappointing sales since it was launched in April 2010, and which is facing growing competition from easier-to-administer drugs, said the closure of its Morris Plains, New Jersey, factory would greatly reduce its cost of goods sold.
Dendreon expects an initial related restructuring charge of about $4 million and a noncash restructuring charge of about $65 million to be recorded in the third quarter of this year.
It expects full implementation of the restructuring to take about a year and anticipates to continue taking related charges until the plan is complete.
The company expects to begin benefitting from the restructuring plan in the first half of 2013.
Shares of Dendreon fell about 19% to $5.00 on the news. They had closed at $6.18 on Monday on the Nasdaq. . .View Full Article