Let me be very clear, I’m not satisfied with the commercial performance of PROVENGE and believe more men with advanced prostate cancer should be benefiting from the product. We recognize that we had to rebuild our commercial organization to become more flat and that began with the hiring of Joe in March and has continued through the second quarter. We are not backing down our commitment to PROVENGE, in fact our investment in growing the product will remain constant and we will continue to invest in generating PROVENGE clinical data at the current rate. We will increase our focus on customer service and this is in line with the top priority that I outlined in our Q1 call.
Second, I learned that we have made important strides in how to manufacture and deliver PROVENGE. Looking at the cost of goods, it would be very easy and very wrong to apply conventional wisdom in making decisions about how to lower these costs. After a careful analysis, we have determined that we can deliver up to $1 billion of PROVENGE from our two manufacturing facilities in Georgia and California without impacting quality or customer service thereby, lowering our cost of goods, which was in line with our second priority that I outlined. Since launch, we've learned a great deal about the strides in automation that could help us at least double the output of PROVENGE in these two facilities to help us meet any growing demand as well as continuing to lower cost of goods.
Third, I learned while the Company grew its employee based and invested heavily to build systems and prepare for commercialization. There are opportunities to become more efficient and cut costs from the G&A standpoint to come more into line with benchmark companies. The decision to release employee for a so committed more patients was not easy and was only taken after careful analysis and study. These changes however are necessary and essential. We thank all of our employees for their commitment.
As a result of the restructuring, we expect to reduce costs by approximately $150 million, annually. The Company believes it will be positioned to be cash flow positive when net product revenues reach approximately $100 million in a quarter. With this restructuring, Dendreon expect to reduce those cost of goods sold to less than 50% of revenue fall in the closure of the Morris Plains facility, down from 77% at the end of the second quarter. We expect just to continue to reduce our COGS through ongoing operational efficiencies, automation, systems improvement and increased sales over time. The benefits associated with these restructuring initiatives are expected to begin to appear in our financial results as early as the first half of 2013.
So, today we set a new course for Dendreon. One, I will the stronger Company, a Company focused on the increasing customer service and establishing PROVENGE as the foundation of care for men with advanced prostate cancer, Company committed to delivering a high quality product as efficiently as possible, a company committed to generating clinical data around PROVENGE to help men around the world and their battle with prostate cancer, a Company committed to delivering value for its shareholders.