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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)

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Results for dndn
Biohazard
31 Jul 15 08:38:44
Every company has its strengths. For $DNDN it was commercial, for $ACAD it's manufacturing, for $VTL it's performing clinical trials.
Andy Smith
30 Jul 15 07:33:02
@adamfeuerstein and NitroMed and $DNDN
Maxim Jacobs, CFA
30 Jul 15 06:07:27
$MNKD is making $DNDN look like a success story in comparison. At least people actually use Provenge.
Captain Sequence
30 Jul 15 05:48:41
@zbiotech " $DNDN reladed "
DailyStockPicks
29 Jul 15 09:19:36
$OCLS $OCLSW break out up 10% today. Price target of $5 $GES $HCC $FOLD $NTEK $DNDN $DNDNQ investors read http://t.co/rWpJvFmAFr
shmittahcapital
29 Jul 15 07:24:02
@bradloncar we need u to do what u did @ $dndn!!!!
ofir
29 Jul 15 07:13:15
RT @CaptainFuture__: $MNKD somehow reminds me of $DNDN
Captain Sequence
29 Jul 15 07:09:42
$MNKD somehow reminds me of $DNDN
Kristina Duering
25 Jul 15 01:26:38
RT @nixon786: $IBB $XBI Biotech reality check done today : selling a drug is most difficult part in biotechs ---> $BIIB tecfidera. $DNDN
Bursatil Biotech
24 Jul 15 18:58:07
RT @nixon786: $IBB $XBI Biotech reality check done today : selling a drug is most difficult part in biotechs ---> $BIIB tecfidera. $DNDN
Anna De
24 Jul 15 18:54:39
RT @nixon786: $IBB $XBI Biotech reality check done today : selling a drug is most difficult part in biotechs ---> $BIIB tecfidera. $DNDN
Reporting Standards
24 Jul 15 18:50:50
$dndn DENDREON CORP filed a new #XBRL report to the #SEC. http://t.co/UUznsLUrpA
BosBiotech
24 Jul 15 18:19:44
RT @nixon786: $IBB $XBI Biotech reality check done today : selling a drug is most difficult part in biotechs ---> $BIIB tecfidera. $DNDN
nixon786
24 Jul 15 18:13:14
$IBB $XBI Biotech reality check done today : selling a drug is most difficult part in biotechs ---> $BIIB tecfidera. $DNDN
E B
23 Jul 15 17:54:24
@MJR222 I'm not a fan, I think it's all hype, too many eyes, run by $DNDN guys, but everyone hates on me for that opinion. Could be wrong
shmittahcapital
23 Jul 15 13:34:04
@bradloncar @BioDueDiligence $DNDN?
				
				
  +Follow August 23, 2013 4:12PM
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