Dendreon, Biotech Cult Firm, Cuts Workers, Posts Earnings–Shares Off 18%

24/7 Wall St.

Dendreon (NASDAQ: DNDN), the small biotech firm with a cult following a among Wall St. traders, posted earnings today and slashed its staff.  The stock dropped immediately after the news, and was down nearly 20%.

Dendreon trades over six million shares a day, despite the fact that its market cap is well under $1 billion. The market has lost faith in the company’s prospects and the stock trades at $5 down from a 52-week high of $37.72

The Dendreon layoff announcement said

As a result of the restructuring, the Company expects to reduce costs by  approximately $150 million annually, including a reduction in headcount of more  than 600 full-time and contractor positions over the next 12 months. Full  implementation of the restructuring is expected to take 12 months.

Based on the firm’s share price, Wall St. is clearly skeptical about management’s claim.

Dendreon’s earnings reinforced concerns. In its earnings report, the…

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