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Dendreon Priced To Go Out of Business

  +Follow August 23, 2013 4:12PM
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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.


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Results for dndn
Bio Stocks™
31 Jan 15 14:07:37
After $AGN loss, is $VRX dumpster diving? $DNDN http://t.co/Vvmg2sj6eF #biotech
Dieter Hovekamp
31 Jan 15 11:40:31
RT @zbiotech: key assumption for $DNDN rationale...'sales remain at least flat' $VRX
PennyStocker
31 Jan 15 11:35:49
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $AUY $S $KGC $DNDN
ProVesting
31 Jan 15 04:06:01
$DNDN $VRX $AGN $ACT: After Allergan loss, is Valeant dumpster diving?: http://t.co/SKumfvY2uw
PennyStocker
30 Jan 15 21:15:22
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $AUY $S $KGC $DNDN
The Skeptic
30 Jan 15 16:13:54
@Liberty8988 @BluegrassCap I wish there was some B+L product that would help me roll my eyes forward from the back of my head. $VRX $DNDN
The Skeptic
30 Jan 15 15:48:01
@Liberty8988 @BluegrassCap I don't give advice, much less on $VRX. Just out of curiosity, as a $VRX long do you like $DNDN bid ?
PennyStocker
30 Jan 15 15:15:25
Wow the last pick from http://t.co/p3LC54YE49 popped over 450%. Nice for being free. $AUY $S $KGC $DNDN
Bluegrass Capital
30 Jan 15 15:03:43
RT @TheSkeptic21: The $DNDN bid may be a signal that it's time to turn that $VRX position into cash. cc: @bluegrasscap
The Skeptic
30 Jan 15 14:39:30
The $DNDN bid may be a signal that it's time to turn that $VRX position into cash. cc: @bluegrasscap
John Carroll
30 Jan 15 13:58:52
@AJRotunno1984 The $Kite team told me they looked at the old $DNDN facilities, laughed and moved on
A.J. Rotunno
30 Jan 15 13:46:19
If anyone is wondering, $KITE newly leased mfg+R&D facility is 1/10 the size of $DNDN Seal Beach mfg. facility.
TriadStrategicSvcs
30 Jan 15 12:22:26
RT @megtirrell: $VRX to buy Provenge out of $DNDN bankruptcy for $296m; Pearson calls it an "economical way" to get into cancer mkt http://…
Alex Lash
30 Jan 15 11:06:20
English pub? Horror film? No. The Stalking Horse, explained: @benthefidler on $VRX Valeant's bid for bankrupt $DNDN http://t.co/M1QyE5DNRj
TheStreet Biotech
30 Jan 15 10:49:22
In the end, Dendreon $DNDN is worth less than 50 cents on the dollar http://t.co/vy0xln84bD
James KK
30 Jan 15 10:07:15
RT @LifeSciencesMkt: That moment a $VRX shareholder realizes they lost the Allergan acquisition but picked up $DNDN instead http://t.co/zzU…
A.J. Rotunno
30 Jan 15 08:36:30
$DNDN 300m/year revenue. 150m/year to make/sell PV. 150m/year -> interest on debt, Seattle & NJ facilities/ppl (R&D +execs). $VRX stupid?
Wbr
30 Jan 15 08:27:08
RT @bioILLOGICAL: No one has pointed out the $1B+ in tax benefits from incurred losses from the $DNDN purchase for pennies on the dollar. $…
Spencer Moen
30 Jan 15 08:01:20
RT @megtirrell: $VRX to buy Provenge out of $DNDN bankruptcy for $296m; Pearson calls it an "economical way" to get into cancer mkt http://…
Liberty
30 Jan 15 08:01:00
RT @bioILLOGICAL: No one has pointed out the $1B+ in tax benefits from incurred losses from the $DNDN purchase for pennies on the dollar. $…
bioILLOGICAL
30 Jan 15 07:36:05
No one has pointed out the $1B+ in tax benefits from incurred losses from the $DNDN purchase for pennies on the dollar. $VRX
SMA
30 Jan 15 06:50:01
Penny stock $DNDN Extreme Positive S-Score Jan 30, 9:49 AM ET, chart at https://t.co/s3otXQJJhU #trading #stock #PennyStock
6 Degrees PR
30 Jan 15 06:44:26
ICYMI: $VRX made a $296M all-cash bid to buy $DNDN, salvaging its prostate cancer drug Provenge: http://t.co/MY3qqLJSca #pharma
LifeSciencesMkt
30 Jan 15 06:22:21
The APOCALYPSE is near: 1) $VRX bids for $DNDN 2) @adamfeuerstein somewhat +'ve on $CTIC http://t.co/UKwwM35Hy9 via @TheStreet
zach
30 Jan 15 05:38:34
key assumption for $DNDN rationale...'sales remain at least flat' $VRX
Dieter Hovekamp
30 Jan 15 05:30:33
@JacobEPVantage even the #DC immunotherapies might not need $DNDN overhead http://t.co/WB4MVCnZHj
Industry Pharmacists
30 Jan 15 05:25:55
RT @fwpharma: Valeant to buy Dendreon's prostate cancer therapy Provenge for $296 million http://t.co/yKHuUxSUfE $VRX $DNDN #pharma
Dieter Hovekamp
30 Jan 15 05:19:48
RT @JacobEPVantage: Umer pretty much nails it on $DNDN Provenge opportunity. Is $VRX smart enough? http://t.co/rYJC9qJqcc
Dieter Hovekamp
30 Jan 15 05:19:12
@adamfeuerstein @JacobEPVantage use the $DNDN manufacturing & logistic facilities for CAR-T - no need 4 CAR-T winners http://t.co/KNVg3EzLAW
Bio_Tech_Boss
30 Jan 15 05:14:36
The $DNDN story finally comes to an end. Was fortunate to exit a very large long position at $40 in 2010. $IBB http://t.co/vjyHJZcBNU
Captain Sequence
30 Jan 15 05:06:36
$VRX entering Cancer market with purchase of $DNDN - sidenote: $VRX selling $SQNM Rentnagene AMD diagnostic test http://t.co/OOPXCa8Oya
Jacob Plieth
30 Jan 15 05:05:17
Umer pretty much nails it on $DNDN Provenge opportunity. Is $VRX smart enough? http://t.co/rYJC9qJqcc
Lee Buckler
30 Jan 15 04:45:40
RT @JohnCFierce: Only way to make any sense of Valeant's deal to buy $DNDN is to use aging oil well math. You can pump it just enough to ma…
SpeediTrader
30 Jan 15 04:41:34
Valeant selected as lead bidder to acquire Dendreon, Provenge for $296M $VRX $DNDN
John Carroll
30 Jan 15 04:34:38
Only way to make any sense of Valeant's deal to buy $DNDN is to use aging oil well math. You can pump it just enough to make some cash.
Tom Tobin
30 Jan 15 04:34:15
RT @matthewherper: You need to cut back, dude. RT @adamfeuerstein I had this crazy dream that $VRX bought $DNDN…. I must be drunk.
Bidness Etc
30 Jan 15 04:28:15
Valeant recently inked an agreement with Denderon to buy its assets - http://t.co/CFBed4qDPU $VRX $DNDN http://t.co/M8NrvICYkg
John_Hempton
30 Jan 15 04:27:53
RT @adamfeuerstein: I had this crazy dream that $VRX bought $DNDN…. I must be drunk.
Matthew Herper
30 Jan 15 04:27:28
You need to cut back, dude. RT @adamfeuerstein I had this crazy dream that $VRX bought $DNDN…. I must be drunk.
svenmhartke
30 Jan 15 04:13:21
$DNDN $DNDNQ Valeant Selected As Lead Bidder To Acquire Dendreon And Its Leading Immunotherapy Treatment, PROVENGE® http://t.co/xz1DC3sDLL
Beck
30 Jan 15 04:02:54
RT @dhovekamp42: $DNDN $VRX UPDATE 1-Valeant to buy Dendreon's prostate cancer vaccine Provenge http://t.co/0UGZmU4A9J via @reuters
Dieter Hovekamp
30 Jan 15 03:49:09
$DNDN $VRX UPDATE 1-Valeant to buy Dendreon's prostate cancer vaccine Provenge http://t.co/0UGZmU4A9J via @reuters
Ben Fidler
30 Jan 15 03:38:23
Dendreon Gets $296M Bid From Valeant as Bankruptcy Auction Looms http://t.co/KKmAKy6P3o $DNDN $VRX
il falso guaritore
30 Jan 15 03:29:54
@GABRIELEFRATUS $DNDN non è fallita per demeriti "scientifici", ma per idiozia manageriale... $LJPC come sta messa su quel versante?
Lucie Ellis
30 Jan 15 03:11:46
RT @ScripMandy: $VRX Valeant selected as lead bidder for Dendreon; must be approved by court in $DNDN bankruptcy proceedings. PR: http://t.…
Ivan Bunin
30 Jan 15 02:35:39
$DNDN http://t.co/YJe5ZQEoWX
Jacob Plieth
30 Jan 15 02:31:41
Just in case you were wondering $DNDN $VRX http://t.co/ljaMaqgt2V
Audi
30 Jan 15 02:22:07
RT @fwpharma: Valeant to buy Dendreon's prostate cancer therapy Provenge for $296 million http://t.co/yKHuUxSUfE $VRX $DNDN #pharma
David Grainger
30 Jan 15 01:12:53
Can only assume Provenge profit margin is VERY thin (due to high COGs) if $VRX will only pay 1yr sales revenues in cash to acquire it? $DNDN
Liftstream
30 Jan 15 01:10:11
RT @megtirrell: $VRX to buy Provenge out of $DNDN bankruptcy for $296m; Pearson calls it an "economical way" to get into cancer mkt http://…
				
				
  +Follow August 23, 2013 4:12PM
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