Goldman Sachs Said Q4 Call Again Raises Dendreon (DNDN) Provenge Concerns
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Rating Summary:
2 Buy, 15 Hold, 9 Sell
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Today's Overall Ratings:
Up: 7 | Down: 17 | New: 11
Rating Summary:
2 Buy, 15 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 17 | New: 11
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Goldman Sachs commented on Dendreon (NASDAQ: DNDN) following yesterday's Q4 results saying the call once again raises concerns on Provenge growth trajectory.
The firm noted that Q1 Provenge sales are expected to grow low-single digits vs. mid-20% for the last two quarters, $2-$3M of sales expected in Jan. were pulled into Dec.
Unlike the fourth quarter, Goldman does't expect upside in the first quarter. "Given the 4Q call was held with visibility on two thirds of 1Q12, it is unlikely that 1Q could hold a similar surprise (3Q call was held with visibility on one third of 4Q)," the analyst comments.
They also highlighted that while there was improvement in COGS in 4Q, the road to sustained profitability is unclear.
"In the larger picture, we continue to see Provenge as an asset that can be monetized with good execution," the analyst said. "The bar is on the new leadership to deliver on both execution and setting Street expectations."
Goldman maintained a Neutral rating and $11 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 $11.81 yesterday.
The firm noted that Q1 Provenge sales are expected to grow low-single digits vs. mid-20% for the last two quarters, $2-$3M of sales expected in Jan. were pulled into Dec.
Unlike the fourth quarter, Goldman does't expect upside in the first quarter. "Given the 4Q call was held with visibility on two thirds of 1Q12, it is unlikely that 1Q could hold a similar surprise (3Q call was held with visibility on one third of 4Q)," the analyst comments.
They also highlighted that while there was improvement in COGS in 4Q, the road to sustained profitability is unclear.
"In the larger picture, we continue to see Provenge as an asset that can be monetized with good execution," the analyst said. "The bar is on the new leadership to deliver on both execution and setting Street expectations."
Goldman maintained a Neutral rating and $11 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 $11.81 yesterday.
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