Dendreon Corporation Reports Second Quarter 2000 Results.Business Editors, Health/Medical Writers SEATTLE--(BW Health Wire)--July 26, 2000 Dendreon Dendreon is a Seattle based biotechnology company. Its leading product candidate, Sipuleucel-T (known as Provenge during drug trials), is an immunotherapy for prostate cancer. Corporation (Nasdaq:DNDN) today reported results for the quarter ended June 30, 2000. The net loss for the second quarter was $4.2 million, or $0.25 per share, on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, compared to a net loss of $3.3 million, or $0.31 per share on a pro forma basis for the quarter ended June 30, 1999. Pro forma per share information is calculated assuming the conversion of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to common stock from the date of original issuance. The preferred stock was converted to common stock upon the completion of the Company's initial public offering. Revenues for the second quarter of 2000 were $1.1 million, compared to $926,000 for the same period in 1999. Revenues for the six months ended June 30, 2000 were $2.3 million compared to $1.6 million for the six months ended June 30, 1999. Revenues included research support from Kirin Brewery A brewery can be a building or place that produces beer, or a business (brewing company) whose trade is the production and sale of beer. Breweries can take up multiple city blocks, or be a collection of equipment in a homebrewer's kitchen. Co., Ltd. and grant revenues. Dendreon's total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the second quarter of 2000 increased 25% to $5.3 million. Research and developments costs increased 37% to $3.8 million in the second quarter of 2000 and increased 36% to $7.3 for the six months ended June 30, 2000. The increases in research and development costs for the second quarter and first half of 2000 are primarily associated with the start of two Phase III clinical trials Noun 1. phase III clinical trial - a large clinical trial of a treatment or drug that in phase I and phase II has been shown to be efficacious with tolerable side effects; after successful conclusion of these clinical trials it will receive formal approval from the and supporting infrastructure for Dendreon's therapeutic vaccine therapeutic vaccine Immunology A vaccine–eg, Salk's Remune™ intended to treat a viral infection by stimulating the immune system. See Vaccine therapy. , Provenge(TM). General and administrative expenses increased 3% to $1.5 million for the second quarter of 2000 and increased 7% to $2.9 million for the six months ended June 30, 2000. "The funding from our recent initial public offering in June leaves us well positioned as we continue our Phase III clinical trials for Provenge(TM) -- our therapeutic vaccine for the treatment of patients with advanced prostate cancer prostate cancer, cancer originating in the prostate gland. Prostate cancer is the leading malignancy in men in the United States and is second only to lung cancer as a cause of cancer death in men. ," said Christopher S. Henney, Ph.D., D.Sc., president and chief executive officer. "Clinical progress has also continued with Mylovenge(TM), Dendreon's therapeutic vaccine for the treatment of multiple myeloma multiple myeloma A malignant proliferation of abnormal plasma cells that populate the marrow-containing bones of the body. The affected plasma cells produce myeloma protein, a monoclonal antibody that replaces normal antibodies in the blood, thereby increasing susceptibility . We were pleased to have expanded our alliance with Kirin Brewery Co., Ltd. this quarter through their agreement to develop Mylovenge(TM) for the Asian market." Cash and short term investments as of June 30, 2000 totaled $56.0 million compared to $13.8 million at December 31, 1999. The increase in cash resulted from the sale of 5.0 million Dendreon common shares, including 500,000 shares issued to Kirin Brewery Co., Ltd. in a private placement concurrent with the initial public offering, that generated $45.3 in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). . The Company commenced its initial public offering on June 16, 2000. Dendreon Corporation discovers and develops novel products for the treatment of cancer through its innovative manipulation of the immune system immune system Cells, cell products, organs, and structures of the body involved in the detection and destruction of foreign invaders, such as bacteria, viruses, and cancer cells. Immunity is based on the system's ability to launch a defense against such invaders. . Dendreon is focused on the development of therapeutic cancer vaccines Cancer vaccines A treatment that uses the patient's immune system to attack cancer cells. Mentioned in: Pancreatic Cancer, Exocrine through the use of antigen antigen: see immunity. antigen Foreign substance in the body that induces an immune response. The antigen stimulates lymphocytes to produce antibodies or to attack the antigen directly (see antibody;immunity). discovery, antigen engineering and dendritic cell dendritic cell n. 1. A cell that has branching processes. 2. Any of the cells in the neural crest of the embryonic ectoderm having extensive processes and developing early as producers of melanin. technologies. These vaccines are designed to stimulate cell-mediated immunity cell-mediated immunity n. Abbr. CMI Immunity resulting from a cell-mediated immune response. Also called cellular immunity. -- the body's key defense against cancer. Except for historical information contained herein, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that may cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that may cause such a difference include risks related to adverse clinical results as our products move into and advance in clinical trials, possible delays in obtaining, or failure to obtain, FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval for our products, risks inherent in early stage product development and the failure by Dendreon to secure collaborators. Further information on the factors and risks that could affect Dendreon's business, financial condition and results of operations are contained in the Company's public disclosure filings with the U.S. Securities and Exchange Commission (SEC), including the Company's Form S-1, (333-31920), which are available at www.sec.gov.
DENDREON CORPORATION
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
-------------------- --------------------
2000 1999 2000 1999
-------- -------- -------- --------
Total Revenue 1,105 926 2,285 1,612
Operating expenses:
Research and
development 3,801 2,776 7,321 5,391
General and
administrative 1,510 1,465 2,897 2,715
-------- -------- -------- --------
Total operating
expenses 5,311 4,241 10,218 8,106
-------- -------- -------- --------
Loss from operations (4,206) (3,315) (7,933) (6,494)
Interest income 279 52 497 142
Interest expense (158) (57) (314) (82)
Other Income
(loss), net -- -- -- --
-------- -------- -------- --------
Interest and other
income, net 121 (5) 183 60
-------- -------- -------- --------
Loss before
income taxes (4,085) (3,320) (7,750) (6,434)
Provision for
income taxes 100 -- 100 --
-------- -------- -------- --------
Net Loss (4,185) (3,320) (7,850) (6,434)
Deemed dividend
upon issuance
of convertible
preferred stock -- -- (4,110) --
-------- -------- -------- --------
Net loss attributable
to common stockholders $ (4,185) $ (3,320) $(11,960) $ (6,434)
======== ======== ======== ========
Pro forma basic and
diluted net loss
per share $ (0.25) $ (0.31) $ (0.75) $ (0.60)
======== ======== ======== ========
Shares used in
computation of pro
forma basic and
diluted net loss
per share 16,758 10,800 16,008 10,706
======== ======== ======== ========
DENDREON CORPORATION
BALANCE SHEET DATA
June 30 December 31
2000 1999
(Unaudited)
------- -------
Cash and cash equivalents $52,222 $ 7,085
Short-term investments 3,756 6,728
Total Assets 61,267 17,375
Total stockholders' equity 48,576 5,569
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