Amid 65% Decline in Dendreon (DNDN) Shares, Not All Analysts Bearish

Dendreon Corp. (Nasdaq: DNDN) has investors scampering for a foothold Thursday following the release of its Q2 results Wednesday.

The company released quarterly numbers which were inline to better than the Street, however management also canceled its Provenge revenue guidance for 2011.

Dendreon shares are down more than 65 percent for the session.

A litany of analysts released notes following the results. While most were very negative, several defended the stock.

Let's take a look at some highlights:

• Goldman Sachs - maintains Buy, slashes price target from $50 to $20. "After the sharp share price drop in postmarket trade to $13 overnight, Dendreon is reflecting close to the worstcase scenario for Provenge in our view. While we have been clearly wrong on the scope of the Provenge shortfall, we believe there is still a reasonable probability that Provenge could still be a $1bn+ drug which could support the stock in the $20s."
  
  Goldman reduced its EPS estimates for 2011 and 2012 from ($2.39) and ($0.32) to ($2.81) and ($1.18), respectively.
  
  
• Wedbush - Reiterates Underperform and cut its price target from $28 to $8. Firm now forecasting Provenge sales of $271 million, $530 million, $644 million, $755 million, and $830 million for years 2011 through 2015, respectively. "While management indicated that they believe temporary reimbursement issues were slowing the sales ramp, their actions seem longer-term and inconsistent with that view."
  
  The firm raised its 2011 loss estimate from $2.27 to $2.60 and its FY12 estimate from a gain of $0.26 to a loss of $1.55.
  
  
• Leerink Swann - Maintains Outperform, price target moves from $55 to $18. "Our recent survey published on 8/1/11 indicated that the most prominent consideration holding back physicians, especially urologists, is concerns about reimbursement rather than lack of patients or competition. We continue to believe that this is an addressable issue and PROVENGE can grow, as data points in our survey suggest that comfort level with reimbursement increases with length of experience with PROVENGE."
  
  Due to a lack of clarity in the company's cost structure and in the company's idea to reduce the work force, the firm is reducing its 2011 and 2012 EPS estimates from ($2.48) and $0.53 to ($3.08) and ($0.91). Sees 2014 Provenge sales of $720 million, which represents 7,700 patients.

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