Canaccord Genuity Cuts PT and Estimates on Dendreon (DNDN); Going Off the Rails on a Crazy Train

Canaccord Genuity maintains a 'Hold' on Dendreon (NASDAQ: DNDN) price target of $6.00 (from $11.00).

Analyst, Salveen Richter, said, "DNDN reported Q2 Provenge net revenue of $80.0M, below consensus of $85.8M and CGe of $84.9M and sequentially down QoQ (-2.4% vs. low-single-digit growth guidance; not attributed to Zytiga), simultaneously with a strategic restructuring to reduce costs by ~$150M annually..."

"We revising our FY12-FY16 Provenge revenue estimates downwards to account for current trends, lowering COGS given the plant closure and R&D and SG&A expense in accordance with the restructuring, and accounting for a ~$70M non-cash restructuring charge in Q3/12. This results in a decrease in our GAAP EPS estimates for FY12, ($2.98) from ($2.51), and beyond. Q2 GAAP EPS was ($0.65), below consensus of ($0.59) and roughly in line with CGe of ($0.66)."

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 $6.18 yesterday.

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