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Collins Stewart Downgrades Dendreon (DNDN) to Neutral; Reimbursement Headwinds and Demand Up in the Air

August 4, 2011 7:12 AM EDT Send to a Friend
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Price: $2.64 -1.12%

Rating Summary:
    4 Buy, 17 Hold, 12 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 10 | New: 8
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Collins Stewart downgraded Dendreon (NASDAQ: DNDN) rom Buy to Neutral, price target slashes from $55 to $19.

Collins analyst says, "Given July Provenge sales of ~$19M (vs. ~$15M in April) and ~0.8 patients/month/account (vs. 1-2 expected) in 2Q, we wonder if the shortfall is solely attributable to DNDN's aforementioned issues or reflective of a lack of demand (physicians want to see tangible PSA/PFS benefit) and/or competition (Zytiga) and may call the CRPC market size into question. We are stepping to the sidelines until we gain clarity on the root causes behind the slower uptake and look to 3Q for insight into the role of the NCD and Q-code in alleviating reimbursement concerns. We are lowering our 3Q11+ Provenge U.S. revenue estimates and now model for peak sales of ~$1B (vs. $2B prior) in FY16."

For more ratings news on Dendreon click here and for the rating history of Dendreon click here.

Shares of Dendreon closed at $35.84 yesterday.




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