Wedbush Reiterates an 'Underperform' on Dendreon (DNDN); Sells Victrelis Royalty for $125M, Delaying Inevitable Financing
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Price: $0.13 --0%
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush reiterates an 'Underperform' on Dendreon (NASDAQ: DNDN) price target of $5.00.
Wedbush analyst says, "Dendreon announced that it is selling its royalty interest in intellectual property relating to Victrelis (boceprevir, an antiviral drug approved to treat Hepatitis C infection) that had been licensed to Schering-Plough (now part of Merck, (NYSE: MRK) Not Rated) for a $125M cash payment. We believe that this transaction makes sense given DNDN’s cash needs and that Hepatitis C is outside DNDN’s core therapeutic focus."
"As we have previously noted, DNDN is essentially in a race to build its Provenge sales to a level that will allow it to achieve cash flow profitability before being required to access the capital markets due to dwindling cash levels, or at least to demonstrate a clear path to profitability so it can access capital on reasonable terms...While a positive for the company’s balance sheet in the near-term, we still estimate that DNDN will have to access the capital markets, now in mid:13, rather than YE:12."
For an analyst ratings summary and ratings history on Dendreon click here. For more ratings news on Dendreon click here.
Shares of Dendreon closed at $8.66 yesterday.
Wedbush analyst says, "Dendreon announced that it is selling its royalty interest in intellectual property relating to Victrelis (boceprevir, an antiviral drug approved to treat Hepatitis C infection) that had been licensed to Schering-Plough (now part of Merck, (NYSE: MRK) Not Rated) for a $125M cash payment. We believe that this transaction makes sense given DNDN’s cash needs and that Hepatitis C is outside DNDN’s core therapeutic focus."
"As we have previously noted, DNDN is essentially in a race to build its Provenge sales to a level that will allow it to achieve cash flow profitability before being required to access the capital markets due to dwindling cash levels, or at least to demonstrate a clear path to profitability so it can access capital on reasonable terms...While a positive for the company’s balance sheet in the near-term, we still estimate that DNDN will have to access the capital markets, now in mid:13, rather than YE:12."
For an analyst ratings summary and ratings history on Dendreon click here. For more ratings news on Dendreon click here.
Shares of Dendreon closed at $8.66 yesterday.
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