Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Dendreon Priced To Go Out of Business

  +Follow August 23, 2013 4:12PM
Tickers Mentioned:

An analyst at Deutsche Bank downgraded Dendreon Corp. (DNDN) on Aug. 23, lowering the price target on the biotech company all the way to $1 a share. The bank noted that Dendreon has posted disappointing sales of their prostate cancer treatment drug Sipuleucel-T  (trade name Provenge) and is accumulating massive debt, and is in trouble of going under completely.

Duetsche's assessment of the Seattle, Wa.-based biotech was dire. In a note to investors, analyst Robyn Karnauskas wrote, “Per our calculations, even if there is drastic restructuring and significant cost cuts, spending may still outpace [revenue] growth in the near term. Consequentially, we believe that the terms of a debt refinancing may have a negative impact on equity holders.” The company downgraded Dendreon to “sell.” Deutsche had previously held a $6 price target for the stock.

Following Dendreon’s dismal second quarter earnings on Aug. 17, Wedbush Securities analyst David Nierengarten was even more pessimistic than Deutsche, and put his price target of the company at zero. That is, the only option for the troubled company is to file for bankruptcy.

Nierengarten said the company’s flagship product Provenge has always been doomed, as it is too expensive to produce and turn a profit, and thus Dendreon stands no chance of survival.

Dendreon was priced as high as $57.67 a share in April 2010 following the FDA approval of Provenge, and the stock hovered between $30 and $40 until Aug. 4, 2011. On that date the company abandoned its forecast for Provenge, and the stock fell 66 percent that day, and has continued plummeting since.

Dendreon dropped 9.72 percent on the poor analyst forecast to hit $2.88 a share, the lowest the stock has been in over four years.

(image courtesy of Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Signup for our daily newsletter and get our best articles emailed right to you!

Results for dndn
28 Nov 15 22:12:08
$SALE breakout on #BlackFriday up 5% target $15. 6 EV/EBITDA, $60M stock buyback plan in Q4 https://t.co/qM8kTQpx0i $NTEK $DNDN $DNDNQ
25 Nov 15 09:56:08
RT @Pharmdca: Over confidence by respective managements a bad omen i guess. $bmrn $amrn $espr $dndn. some examples from past especially $am…
25 Nov 15 09:53:22
Over confidence by respective managements a bad omen i guess. $bmrn $amrn $espr $dndn. some examples from past especially $amrn $dndn
23 Nov 15 11:37:27
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here https://t.co/8WvnrVmkBS .. $DNDN $NAII $VOXX
Stocks News&Markets
23 Nov 15 08:00:39
lx21 made $10,365 on $DNDN -Check it out! https://t.co/MdtuFgDX5x Learn #howtotrade https://t.co/axK8SMSgo9 $WAC $EFUT $REN $SUNE $AEZS
  +Follow August 23, 2013 4:12PM



blog comments powered by Disqus

 Today's Must Reads

What Crowdfunding Leaders Are Saying About the SEC’s Approval of Title III

How the Drug Price Scrutiny is Affecting Pharma Stocks

8 More Tips for Choosing the Right Crowdfunding Platform

Will the Post-Smartphone Era Bring Wearable Drones?

3 Cloud Stocks That Pay Dividends


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register