Dendreon: Crushed By JNJ/Medivation Or By Own Management?
ByFusion Research:Dendreon (DNDN) develops and markets immunotherapies to cure prostate cancer. Immunotherapy enhances the immune response in a patient's body. Currently the company is going through a rough phase, with its revenue seeing a downside due to stiff competition in the prostate cancer treatment market. Further, its current debt levels are further exerting pressure on its bottom line. Dendreon's management believes it can achieve a positive cash flow only if it generates revenue of $100 million per quarter, but we believe this is an unrealistic figure to achieve.
Stiff competition and hesitant patients are major headwind
Dendreon's Provenge therapy was the first immunotherapy approved by FDA in the United States in 2010. The company is facing stiff competition from Johnson & Johnson's (JNJ) Zytiga and Medivation's (MDVN) Xtandi. Zytiga and Xtandi both are oral and once daily drugs, which makes themComplete Story »