Dendreon Corp (NASDAQ:DNDN)

CAPS Rating: 1 out of 5

A biotechnology company focused on the discovery, development and commercialization of novel therapeutics that harness the immune system to fight cancer.

Recs

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Player Avatar zzlangerhans (99.76) Submitted: 8/5/2011 1:11:54 AM : Outperform Start Price: $12.89 DNDN Score: +6.34

Wow. I haven't followed Dendreon closely since I predicted incorrectly that their repeat phase III trial of Provenge would fail. I maintained some skepticism about the commercial potential of Provenge, but after CMS decided to reimburse it I was ready to throw in the towel. Now management suddenly announces that sales are much lower than expected and has yanked future guidance. Let the lawsuits begin.

I think the stock is oversold in the short-term and likely would have rebounded if the indexes hadn't shed 4% today. The company still has more than 700M in the bank and 50M in sales is not exactly garbage. Again, I've lost familiarity with this company but I think they have a good chance at recovery when some optimism returns to the market. CAPSv only play, for sure.

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