Dendreon (DNDN) Hit On Various Worries, Deutsche Bank Defends

Shares of Dendreon Corp. (Nasdaq: DNDN) are getting taken to the woodshed Thursday on two items: First worries that data at ASCO on J&J's (NYSE: JNJ) Zytiga superior Provenge in pre-chemo setting, and; the SEC opened investigation into company practices.

Analysts at Deutsche Bank weighed in on today's concerns:

• On Zytiga, the firm notes: "We continue to believe Zytiga will show a strong PFS benefit (JNJ has already indicated PFS is stat sig) & strong trend in OS (JNJ has stated OS did not meet stat sig). We believe this is the case because Zytiga study
  consists of ketoconazole & Taxotere naive patients. Notably, 10% of Provenge trial patients had previously been treated with Taxotere, hence, they were sicker."
  
  - and -
  
  "More so, at the current level of Provenge sales of $320M annual run rate, we believe Zytiga data is not a material threat. As per future sales, we continue to believe both drugs will be used in sequence, thereby limiting Provenge sales erosion."
  
  
• On the SEC investigation, the firm notes: "As per the SEC investigation, we believe this is old news as it was released in 10-Q, which was posted on 05/07/12. Additionally, the investigation appears to be focused on old managment's practices on Provenge launch & guidance. We expect this investigation to take some time to conclude."

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