Wedbush Places Dendreon's (DNDN) Provenge Chances in EU Near Zero
Tweet
Share
E-mail
Get Alerts DNDN Hot Sheet
Price: $0.13 --0%
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 42
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 42
Join SI Premium – FREE
Wedbush analyst David Nierengarten reiterated an Underperform rating and $1 price target on Dendreon (NASDAQ: DNDN) after the CHMP recommended that the European Medicines Agency (EMA) grant approval to Provenge for asymptomatic/minimally symptomatic prostate cancer patients.
While the EMA is likely to grant approval, Nierengarten asks "who's going to make it?"
The analyst notes management has stated many times that the company would try to find a partner to manufacture Provenge in the EU. "We find it indicative of the company's difficulties in manufacturing Provenge with an acceptable profit margin that no European manufacturer has stepped up yet to work with Dendreon," he said.
If they do find a manufacturer, they find it unlikely that the company would garner a meaningful level of Provenge sales in the EU countries. Adding in the share to a partner, it makes it even less likely that the company would have meaningful profits in the area.
"All-in, we do not estimate any sales for Provenge in the EU, and we do not believe the European opportunity, if there is one, would be profitable in any significance," the analyst concluded.
For an analyst ratings summary and ratings history on Dendreon click here. For more ratings news on Dendreon click here.
Shares of Dendreon are up 3.7 percent, but well off the highs.
While the EMA is likely to grant approval, Nierengarten asks "who's going to make it?"
The analyst notes management has stated many times that the company would try to find a partner to manufacture Provenge in the EU. "We find it indicative of the company's difficulties in manufacturing Provenge with an acceptable profit margin that no European manufacturer has stepped up yet to work with Dendreon," he said.
If they do find a manufacturer, they find it unlikely that the company would garner a meaningful level of Provenge sales in the EU countries. Adding in the share to a partner, it makes it even less likely that the company would have meaningful profits in the area.
"All-in, we do not estimate any sales for Provenge in the EU, and we do not believe the European opportunity, if there is one, would be profitable in any significance," the analyst concluded.
For an analyst ratings summary and ratings history on Dendreon click here. For more ratings news on Dendreon click here.
Shares of Dendreon are up 3.7 percent, but well off the highs.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Downgrades Hims and Hers (HIMS) to Hold
- Wells Fargo Upgrades Kroger (KR) to Overweight, 'Building Catalysts Point to Attractive Stock Setup'
- DTE Energy (DTE) PT Raised to $116 at BofA Securities
Create E-mail Alert Related Categories
Analyst Comments, FDASign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
