Dendreon Corporation Readies Cost-Cutting Plan, Layoffs Expected

Dendreon(DNDN) will announce a business update this afternoon that is expected to include cost reductions, including employee layoffs, aimed at helping the company reach break even with lower sales of its prostate cancer therapy Provenge. The surprise disclosure in August that Provenge sales were weaker than expected forced Dendreon to pull its revenue guidance for the remainder of the year and restructure the company. Dendreon's stock price was punished severely for the Provenge mishap, with shares down 68% since the company reported disappointing second-quarter results. Dendreon closed Wednesday at $11.61.