Early 2012 Uptick Expected for Dendreon's (DNDN) Provenge

October 6, 2011 11:16 AM EDT
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Deutsche Bank commented on Dendreon (NASDAQ: DNDN) Thursday following a meeting with CFO Greg Schiffman.

The firm came away from the meeting with the feeling that doctors will become more comfortable with Provenge reimbursement in the 1st-half of 2012, which will drive a "significant uptick."

"According to the CFO, many centers are saying they want to see 4-6 patients are FULLY reimbursed before adding more patients/month. They think a cycle takes on average 2.5 months to perscribe, treat, & reimburse," the analyst commented.

They note that Q4 is typically the weakest quarter, because few days doctors work/infuse.

A final J-code list comes out in November, although the company doesn't expect Provenge to be on the list. The should come in the next preliminary J-code list out mid-year 2012. However, checks with doctors indicate reimbursement speed with Q-code is sufficient.

Deutsche Bank said the bottom line is that the company is finally putting a marketing plan in place that should get results over time.

The firm maintained a Buy rating and price target of $20 on DNDN, suggesting 122 percent upside from Wednesday's clsoe.

For more ratings news on Dendreon click here and for the rating history of Dendreon click here.

Shares of Dendreon closed at $9.00 yesterday.


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