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news.US-biotechnology company Dendreon has cut 40 jobs involved in the marketing of its prostate cancer vaccine Provenge, as a result of which the company's shares have soared, Reuters has reported.
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Dendreon is currently awaiting FDA approval of its Provenge treatment, but a negative letter from the US regulator looked likely to delay the drug's authorization, which prompted Dendreon to cut 40 jobs, equivalent to 18% of its employees.
According to International Business News, the FDA had informed Dendreon that it required further clinical regarding Provenge, after the drug failed two late-stage tests. This has stalled the company's efforts to commercialize the drug.
The publication reported that Dendreon has dismissed the staff in order to focus on the drug's commercialization, rather than the less imminent task of marketing it. This announcement prompted the company's stock to soar more than 14% to $6.94 on the Nasdaq during the late afternoon, Reuters said.
Dendreon is reported to be expecting non-cash charges of $300,000 and cash charges of $1.5 million as a result the job cuts.