of Dendreon for quite some time. It is telling to review them again in the context of Wednesday’s news. They have clearly become much worse while the board has stood still. Please recall the five key issues:
• The company’s settlement of shareholder lawsuits is concerning.
• Important statements and guidance communicated by management to the investment community have often conflicted with reality or changed significantly throughout time.
• Disclosure of pertinent, and I believe material, information to shareholders has been lacking.
• Many actions by the board and individual company executives have not been shareholder friendly and send the wrong message to long-term investors. These include generous gifts of stock and options to executives, dilutive financings, and significant insider sales.
• Management, in my view, seems unprepared to effectively recognize and answer the public relations challenges facing the company that are outside of the scientific realm.
While these things were obviously apparent in the past to some, I think most would agree they are now indisputable. They cannot be left to linger if Dendreon seriously expects to regain the faith of its investor base. Something must be done.
When we spoke in June, you indicated that you agreed with the need for improvement on many of these ideas. However, no clear path forward was given on a change to the board, which is by far the most important factor for getting these things back on track. In my view, Wednesday’s events have confirmed the need for a new solution and a new path forward. I hope you agree.
In light of recent events, I would be interested to hear your updated thoughts on this issue. I have the upmost respect for this company and want to see it succeed.
Best Regards,
Brad Loncar
