Dendreon's (DNDN) Provenge Hit With a Setback, But Valuation Getting Interesting - Baird
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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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Analysts at Baird commented on Dendreon (NASDAQ: DNDN) mid-day, saying they are incrementally more cautious after Johnson & Johnson (NYSE: JNJ) announced that IDMC recommended unblinding its phase III pre-chemo Zytiga study in metastatic CRPC and switching placebo patients to Zytiga.
"While our surveys have captured off-label pre-chemo Zytiga use, and most docs anticipated positive pre-chemo data, an OS trend for Zytiga in this setting creates a real barrier here for Provenge, despite DNDN's assertion that these two mechanisms can peacefully coexist."
Regardless of what Dendreon says about the sequencing of Provenge and Zytiga, the firm belives "the competitive dynamic of either/or is an issue and could now become more acute."
In the firm's recent Zytiga survey, if approved in the pre-chemo setting, 46% urologists and 63% oncologists would prescribe Zytiga in place of Provenge. And while 22% of both would prescribe Zytiga followed by Provenge, only 16% uros and 13% oncs would prescribe Provenge followed by Zytiga.
They said while their inflection point (Provenge account penetration) to get more constructive on the stock likely just got pushed out with the Zytiga news, they could get more positive on valuation if share weakness continues.
The maintained their Neutral rating and $14 price target.
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 $10.87 yesterday.
"While our surveys have captured off-label pre-chemo Zytiga use, and most docs anticipated positive pre-chemo data, an OS trend for Zytiga in this setting creates a real barrier here for Provenge, despite DNDN's assertion that these two mechanisms can peacefully coexist."
Regardless of what Dendreon says about the sequencing of Provenge and Zytiga, the firm belives "the competitive dynamic of either/or is an issue and could now become more acute."
In the firm's recent Zytiga survey, if approved in the pre-chemo setting, 46% urologists and 63% oncologists would prescribe Zytiga in place of Provenge. And while 22% of both would prescribe Zytiga followed by Provenge, only 16% uros and 13% oncs would prescribe Provenge followed by Zytiga.
They said while their inflection point (Provenge account penetration) to get more constructive on the stock likely just got pushed out with the Zytiga news, they could get more positive on valuation if share weakness continues.
The maintained their Neutral rating and $14 price target.
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 $10.87 yesterday.
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