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Docket No. 513

Date Filed: 3/20/15

/s/ Sarah E. Pierce

Schedule of Cash Receipts and Disbursements

     Bank Reconciliation (or copies of debtor’s bank reconciliations)

     Schedule of Professional Fees Paid

     Copies of bank statements

     Cash disbursements journals

Statement of Operations

Balance Sheet

Status of Postpetition Taxes

    Copies of IRS Form 6123 or payment receipt

    Copies of tax returns filed during reporting period

Summary of Unpaid Postpetition Debts

    Listing of aged accounts payable

Accounts Receivable Reconciliation and Aging

Debtor Questionnaire

/s/ Gregory R. Cox

 March 20, 2015

    Gregory R. Cox

 Chief Financial Officer

 NOTES

 Notes to the MOR:

This Monthly Operating Report (“MOR”) has been prepared solely for the purpose of complying with the monthly reporting requirements applicable in the Bankruptcy Case and is in a format acceptable to the U.S. Trustee. The financial information contained herein is limited in scope and covers a limited time period. Moreover, such information is preliminary and unaudited, and is not prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States. Accordingly, this MOR should not be used for investment purposes.

The financial statements presented in MOR-2 and MOR-3 are prepared on a consolidated company basis for the Debtors and non-debtor affiliates.

 1. SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

 ($ 000s)

Dendreon

 Beginning Cash Balance²

 Total Cash Receipts

 Total Cash Disbursements³

 Intercompany Transfer From / (To) Other Debtors

 Intercompany Transfer From / (To) Non-Debtors

 Net Cash Flow

 Ending Cash Balance²

 1a. BANK RECONCILIATION (OR COPIES OF DEBTORS’ BANK RECONCILIATIONS)

 Description

 Bank Balance

 (+) Deposits in Transit

 (-) Outstanding Checks

 Other

 Book Balance

 1b. SCHEDULE OF PROFESSIONAL FEES PAID

SULLIVAN & CROMWELL, LLP

PRIME CLERK LLC

DELOITTE FINANCIAL ADVISORY SERVICES LLP

SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP

LAZARD FRERES & CO. LLC

YOUNG CONAWAY STARGATT & TAYLOR, LLP

ALIXPARTNERS, LLP

Total

 1c. COPIES OF BANK STATEMENTS

1d. CASH DISBURSEMENTS JOURNALS

The Debtors’ cash disbursement journals are voluminous and not included herein, but copies will be provided upon request

 2. STATEMENT OF OPERATIONS

Dendreon

 Product Revenue, net

 Royalty and Other Revenue

 Total Revenue

 Operating Expenses:

 Cost Of Product Revenue

 Research and Development

 Selling, General and Administrative

 Less: Payroll Expense Included In Categories Above²

 Payroll Expense^2,3

 Restructuring

 Total Operating Expenses

 Income / (Loss) from Operations

 Other Income / (Expense):

 Interest Income

 Interest Expense

 Other Income / (Expense)

 Reorganization Expense

 Net Income / (Loss)

1. The Debtors maintain their accounting records and prepare financial statements on a consolidated basis only. This modified presentation reflects cash basis payroll of the subsidiary entities, which is funded by Dendreon Corp.

2. The Debtors’ consolidated statement of operations reflects an allocation of payroll expenses among several operating expense categories (i.e., Cost of Product Revenue, R&D and SG&A). For the purpose of presenting payroll by entity without double-counting of such expenses, the cash basis payroll must be deducted before being included separately

3. Payroll Expense (noted above) includes payroll, payroll taxes and 401(k). These amounts are funded to ADP via the US Bank Operating account. For taxation purposes, each legal entity pays separate state employment taxes for the states in which it operates

 3. BALANCE SHEET

 ($ 000s)

 As of 2/28/15

  Consolidated¹  

 Current Assets:

 Cash and Cash Equivalents

 Short-Term Investments

 Trade Accounts Receivable

 Inventory

 Prepaid Expenses and Other Current Assets

 Total Current Assets

 Property and Equipment, net

 Long-Term Investments

 Other Assets

 Total Assets

 Current Liabilities:

 Accounts Payable

 Accrued Liabilities

 Accrued Compensation

 Restructuring Liability

 Reorganization Liability

 Current Portion of Capital Lease Obligations

 Current Portion of Facility Lease Obligations

 Total Current Liabilities

 Long-Term Liabilities:

 Other Long-Term Liabilities

-

 Liabilities Subject to Compromise²

Total Liabilities

 Stockholders’ Equity:

 Common Stock

 Additional Paid-In Capital

 Accumulated Other Comprehensive Income

 Accumulated Deficit

 Total Stockholders’ Equity (Deficit)

 Total Liabilities and Stockholders’ Equity

1. The Debtors maintain their accounting records and prepare financial statements on a consolidated basis only

2. The Debtors continue to work to determine the proper balance and reporting for Liabilities Subject to Compromise

 4. STATUS OF POSTPETITION TAXES

 5. SUMMARY OF UNPAID POSTPETITION DEBTS

1 - 30

 Postpetition Accounts Payable

 6. ACCOUNTS RECEIVABLE RECONCILLIATION & AGEING

On February 23, 2015, the Debtors completed the sale of substantially all the Debtor’s assets to a subsidiary of Valeant Pharmaceuticals, Inc. pursuant to the terms sale agreement approved by the court on February 20, 2015.