Brean Murray Carret & Co. Debates Survival of Dendreon (DNDN) Long-Term with Oral Competition; Maintains 'Sell'
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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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Brean Murray Carret & Co. maintains a 'Sell' on Dendreon (NASDAQ: DNDN) price target of $6.00.
Brean analyst says, "...We continue to believe that the COGS are the largest obstacle to being cash flow positive, let alone profitable SG&A was $76 million, and a 10.4% reduction from 3Q11, due to the reduction in headcount and general downsizing, but the SG&A was still almost equal to the Provenge net sales, thereby showing the difficulty DNDN is having in reducing its expenses...Thus, we are confident that DNDN will not be profitable until 2015 at the soonest, and only if the oral drugs that we project to be approved pre-chemo completely underdeliver on our expectations for them. DNDN ended 4Q10 with $618 million in cash and equivalents, with almost half of that consumed over 2012 per our projection."
"We believe that Provenge sales will take a substantial tick-down upon approval of Zytiga in the pre-chemo setting, possibly only a year away, and further upon Phase 3 MDV3100 pre-chemo results coming in late 2013. Also, if demand is not maintained to the point where all plants are needed, DNDN may have to incur significant expenses related to plant shutdown..."
Brean cuts FY12 EPS loss from $1.41 to $2.28 and loss for FY13 from $0.48 to $1.17.
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 $14.86 yesterday.
Brean analyst says, "...We continue to believe that the COGS are the largest obstacle to being cash flow positive, let alone profitable SG&A was $76 million, and a 10.4% reduction from 3Q11, due to the reduction in headcount and general downsizing, but the SG&A was still almost equal to the Provenge net sales, thereby showing the difficulty DNDN is having in reducing its expenses...Thus, we are confident that DNDN will not be profitable until 2015 at the soonest, and only if the oral drugs that we project to be approved pre-chemo completely underdeliver on our expectations for them. DNDN ended 4Q10 with $618 million in cash and equivalents, with almost half of that consumed over 2012 per our projection."
"We believe that Provenge sales will take a substantial tick-down upon approval of Zytiga in the pre-chemo setting, possibly only a year away, and further upon Phase 3 MDV3100 pre-chemo results coming in late 2013. Also, if demand is not maintained to the point where all plants are needed, DNDN may have to incur significant expenses related to plant shutdown..."
Brean cuts FY12 EPS loss from $1.41 to $2.28 and loss for FY13 from $0.48 to $1.17.
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 $14.86 yesterday.
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