Dendreon (DNDN) continues to chip away at the lofty expectations predicted by the company and analysts for this fiscal year, as first quarter revenue numbers were reported as coming in at just over $28 million.
Shares of DNDN had been on a steady rise throughout the first quarter, as higher earnings numbers were expected once the FDA approved additional manufacturing capacity at Dendreon's New Jersey Provenge manufacturing facility.
The true benefits of the additional manufacturing capacity, however, were not expected to be felt until the second quarter of this year as the work stations are being brought online in a phased approach.
Dendreon issued evidence to that fact by announcing April revenue of $15 million along with the first quarter numbers. Already, just one month into the second quarter, revenue has exceeded half that of the first quarter, offering a glimpse that full 2011 revenue expectations of $350-$400 million may be achievable.
For the first quarter revenue fell just short of analyst expectations, but as the numbers indicate, full year guidance is still on track as additional manufacturing capacity comes on line.
The company expects to hear from the FDA regarding work station approval at the Los Angeles manufacturing facility at the end of June and about the Atlanta facility at the end of the summer. The setback-free FDA approval of the New Jersey expansion offers positive indications that the other two facilities will also go off without a hitch.
Approvals at those sites should allow the company to produce enough Provenge to bring in up to $200 million for the fourth quarter this year, in line with previous guidance from the company.
With revenue and demand for the world's first approved prostate cancer vaccine consistently growing, Dendreon is primed to soar into its "Golden Age," rising above the sceptics who have long said that this company, and it's lead product, would fail.
Again, there were no surprises in this quarter's Dendreon earnings, an indicator that all is on track to meet year-end guidance.