Dendreon: Righting The Ship
By Saul Kerpelman:
Dendreon Corporation (DNDN) held a very interesting conference call yesterday evening to outline its restructuring to deal with the slower than predicted launch of its newly approved cancer treatment, Provenge for late-stage prostate cancer.
Provenge trains the patient's immune system to fight cancer, and has been hailed as a major cancer breakthrough--the first cancer immunotherapy approved by the FDA.
The company had consistently guided for $350-$400 million in revenues for 2011 and the shares tanked 67% after its August 3 conference call pulling that guidance after slower than expected uptake, which the company said was related to doctors' fears about reimbursement.
It's obvious there was nothing the company could possibly say that would have instantly regained the lost ground for the share price. That is undoubtedly going to be a multi-quarter process as the company reestablishes its credibility with the Market, but all in all the call was very informativeComplete Story »