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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)

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Results for dndn
30 Jun 15 10:46:29
$MNKD need a good break of 200dma prob next $DNDN
Will Kelly
29 Jun 15 14:41:07
@Mazmasta @AjTrader7 What $DNDN call?
29 Jun 15 11:46:33
.@AjTrader7 thanks for proving my point. What about ur $DNDN buy after they went bankrupt at .22 and sold at like .16? Nice one there! -30%
29 Jun 15 04:25:49
@bradloncar The 800 million $DNDN took on worked out so well
Penny Stock Secret
28 Jun 15 22:36:35
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27 Jun 15 18:04:52
$OCLS strong buy price target of $3 upgraded by Maxim. 100%+ upside $GES $HCC $FOLD $NTEK $DNDN $DNDNQ investors read http://t.co/radWvM4IEG
Joseph Hopkins
26 Jun 15 16:52:15
@dzstep Yeah baby, use it for a vacation. I got burnt on $DNDN; biggest lost I've ever had. Watch $AAVL; people are buying it - STAY AWAY!
Joseph Hopkins
26 Jun 15 16:46:33
@dzstep Dude, please don't go there. $CLDN will be pulling a $DNDN very soon. I'll take your money if you don't want it!
RG Capital
25 Jun 15 12:00:28
@redacre I still think valuation too pie in the sky. 5 patients right? Reminds me of $dndn when optimism was too high.
24 Jun 15 20:32:06
@Hedge_FundGirl Must be the name. John Johnson ruined plenty of companies too--not related. #imclone #savient $dndn http://t.co/m1jkhAhBEs
Penny Stock Secret
21 Jun 15 23:08:12
Yesterday We Made $94,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $DNDN $NAII $VOXX
  +Follow August 23, 2013 4:12PM



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