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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
27 Apr 15 12:38:03
$BLRX promising Pipeline !! $incy $gene $rosg http://t.co/FLtlpVpCaX $CLDX $ARIA $DNDN $ACAD $INCY $PFE $ISIS $REG $RNN
S Manian
26 Apr 15 15:58:38
Will $CLDN #FAIL swoon bios like the $DNDN #FAIL Flu? #perfect-storm
26 Apr 15 09:21:08
@Mazmasta kinda reminds me of $DNDN...
25 Apr 15 05:03:03
Bavituximab/Nexavar found to be effective for advanced HCC http://t.co/rNgf9LBdfX $PPHM $BMS $SPPI $DNDN #KenDart #EasternCapitol
Tom Trimbath
24 Apr 15 20:48:54
Flash crashes and market bubbles may become more likely. Why not? Evolving Conventional Wisdom http://t.co/gciJh2cMW9 #FlashCrash $DNDN
Vernons Pansir
23 Apr 15 18:45:05
$DNDN major bounce coming in the next days!
Filipe Arnaud Maio
23 Apr 15 17:13:15
$DNDN Dunkin' Donuts U.S. comparable store sales growth of 2.7% - Baskin-Robbins U.S. comparable store sales growth of 8.0%
Simon Newell
23 Apr 15 13:42:53
$DNDN Dunkin' Donuts U.S. comparable store sales growth of 2.7% - Baskin-Robbins U.S. comparable store sales growth of 8.0%
23 Apr 15 09:42:04
moving $DNDN to top 3 list on watchlist. like that last move above VWAP and 50c higher. #pullback
Mike Bellafiore
23 Apr 15 06:44:21
moving $DNDN to top 3 list on watchlist. like that last move above VWAP and 50c higher. #pullback
23 Apr 15 06:13:12
Pulling $JUNO's leg b/c CEO was working at $DNDN was hilarious. What $DNDN can do when $JNJ & $MDVN has better drug for prostate ca ?
21 Apr 15 06:00:54
$DNDN New SEC Document(s) for Dendreon Corporation From our Stock News Alerts App
  +Follow August 23, 2013 4:12PM



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