2.2.0.7 false Commitments and Contingencies 0210 - Disclosure - Commitments and Contingencies true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Commitments and Contingencies [Abstract] 0 dndn_CommitmentsAndContingenciesAbstract dndn false na duration Commitments and Contingencies. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Commitments and Contingencies. false 3 COMMITMENTS AND CONTINGENCIES 1 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>10. COMMITMENTS AND CONTINGENCIES</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     We have a supply agreement with Diosynth covering the commercial production of the recombinant antigen used in the manufacture of PROVENGE. We currently have a commitment with Diosynth to purchase antigen through the second quarter of 2011 for a total of $78.7 million related to two orders. As of September 30, 2010, we have paid $21.5 million towards our first order and began receiving shipments of the order in the third quarter 2010. We have a remaining obligation related to the first order of approximately $18.0 million as of September 30, 2010. In May 2010, we placed a second order with Diosynth for shipment of antigen to commence delivery in mid 2011. We prepaid $9.3 million to Diosynth in May 2010 related to this order and have a remaining commitment of $29.9 million. On May 12, 2010, we entered into a Second Amendment to the supply agreement to extend the term of the agreement through December 31, 2018, and unless terminated, the agreement will renew automatically thereafter for additional 5-year terms. The agreement may be terminated upon written notice by us or Diosynth at least 24 months before the end of the initial term or a renewal term or by either party in the event of an uncured material breach or default by the other party. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In September 2010 we entered into a development and supply agreement with GlaxoSmithKline LLC. This agreement is intended to provide a second source for the commercial production and supply of the recombinant antigen used in the manufacture of PROVENGE. The term of the agreement is through December 31, 2015, unless earlier terminated pursuant to the terms of the agreement, and provides for one or more two-year extensions to the then expiring term. At September 30, 2010, we have a remaining payment obligation for the transfer of the antigen production process aggregating $19.9 million payable through August 2011. Upon execution of the agreement, we placed an initial order for approximately $8.3 million, with delivery to commence in the second half of 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In June 2009, we entered into a construction agreement with The Henderson Corporation of PA, Inc. (“Henderson”) to retain Henderson to perform construction related services and to arrange for, monitor, supervise, administer and contract for the construction of Phase II and Phase III of our New Jersey Facility. The guaranteed maximum price for the completion of all work under the construction agreement is approximately $51.1 million, of which $49.8 million has been paid through September 30, 2010. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2009 and January 2010, we entered into construction agreements with Turner Construction Company (“Turner”) to retain Turner to perform construction related services and to arrange for, monitor, supervise, administer and contract for the construction of the build-out of the Atlanta Facility and Orange County Facility, for a maximum total cost of approximately $87.7 million of which $71.0 million has been paid through September 30, 2010. The agreements include incentives for the completion of work prior to milestone dates and penalties for failing to meet such deadlines. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Beginning on May 24, 2007, four proposed securities class action suits were filed in the United States District Court for the Western District of Washington, on behalf of purchasers of the Company’s common stock, purporting to state claims for securities law violations stemming from our disclosures related to PROVENGE and the FDA’s actions regarding our BLA for PROVENGE. The complaints seek compensatory damages, attorney’s fees and expenses. On October 4, 2007, the Court consolidated these actions under the caption <i>McGuire v. Dendreon Corporation, et al.</i>, and designated a lead plaintiff. The lead plaintiff designated the complaint filed June 6, 2007 in <i>McGuire, et al. v. Dendreon Corporation, et al</i>., as the operative complaint. Between December 2007 and January 2009, Dendreon and the individual defendants filed motions to dismiss the original complaint, the amended complaint, and the second amended complaint. The Court granted these motions in part, and denied them in part, allowing lead plaintiff leave to amend the complaint each time. Lead plaintiff filed a third amended complaint on June 8, 2009. The third amended complaint includes claims against Dendreon, our chief executive officer, and a senior vice president, challenging disclosures related to the FDA’s actions regarding our BLA for PROVENGE, and the sale of Dendreon stock by our chief executive officer. On June 29, 2009, defendants filed an answer to the third amended complaint. Discovery was completed on June 22, 2010, and trial had been set for October 18, 2010. On September 16, 2010, the parties agreed to settle the class action for a payment of $16.5 million to the class, with no admission of wrongdoing on the part of defendants. A ruling on defendants’ motion for partial summary judgment was pending at the time the parties notified the Court that they had arrived at a settlement. On October 25, 2010, lead plaintiff filed a motion for preliminary approval of the settlement pending a settlement hearing, a stipulation of settlement, and other settlement documentation. A date for the settlement hearing has not been set. The Company has insurance that is expected to cover a significant portion of the settlement and is in the process of actively pursuing reimbursement. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On March 31, 2009, a complaint captioned <i>Mountanos v. Dendreon Corporation, et al.</i>, was filed in the United States District Court for the Western District of Washington, naming Dendreon, our chief executive officer, and a senior vice president as defendants. The complaint in <i>Mountanos</i> makes similar factual and legal allegations as the second amended complaint filed in the <i>McGuire</i> action described above, but <i>Mountanos </i>is not a class action and the named plaintiffs allegedly purchased options rather than the Company’s common stock. It seeks compensatory damages, attorney’s fees and expenses. On July 2, 2009, plaintiffs filed an amended complaint, which the defendants answered on August 3, 2009. Discovery was completed on June 22, 2010, and trial had been set for October 18, 2010, to take place concurrently with the trial in <i>McGuire v. Dendreon Corporation</i>. On September 27, 2010, the Court dismissed the action with prejudice, after the parties notified the Court that they had reached a settlement. A ruling on defendants’ motion for partial summary judgment was pending at the time the parties notified the Court that they had arrived at a settlement. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     Management believes that final resolution of these matters, individually or in aggregate, will not have a material adverse effect on our financial position, our results of operations, or our cash flows. However, these matters are subject to inherent uncertainties and the actual cost, as well as the distraction from the conduct of our business, will depend upon many unknown factors and management’s view of these may change in the future. Thus, these matters could result in a material adverse effect on our business, financial condition and results of operations. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Includes disclosure of commitments and contingencies. 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