Citigroup Announces New Restructuring Plan

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Citigroup released a research report on Dendreon Corporation
DNDN
announcing they will not change their company views while implementing a necessary restructuring plan. In the report Citigroup writes, “Dendreon announced a restructuring plan after market close, with a reduction of 500 employees or ~25% of total headcount. The Co expects the restructuring to save ~$120M annually, and expects COGS to be ~50% by YE12. With the reduced cost structure, the Co expects to break even on non-GAAP basis at ~$500M revenues run rate. The restructuring plan reflects a shift in management's expectation for the launch trajectory. In addition, the Company also announced gross revenues of ~$22M in August, a 16% increase over July sales of $19M.” Citigroup has a Hold rating and a target price of $14.00 on Dendreon Corporation, which closed yesterday at $10.88.
Posted In: Analyst ColorAnalyst RatingsCitigroup
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