Leonard the Monkey's  Instablog

Short Squeeze Time

DNDN came out with positive data this morning regarding their prostate cancer treatment Provenge trials using immunotherapy. This is really the first possible successful cancer vaccine treatment as everything up until this point has failed using this method.

"Cancer immunotherapy attempts to stimulate the immune system to reject and destroy tumors."

Before you get too over-hyped Dendreon plans to file the new data with the FDA by the fourth quarter, which could lead to decision six months later --- so there is plenty of time before the finish line is reached absent a buyout.

That being said, new analyst target are ranging from the mid to upper twenties using conservative estimates IF (that's a big if) the drug is endorsed by the FDA and Phase IV goes well.

There were and are still many doubters on this name and the short interest was huge going into this news, but this data really is a smack to the face for many of them.

Still the details so far are very short on substance and in the company conference call scheduled for the 28th of this month the company has said they will release the granular details of this latest trial's stats.

I think the shares probably trades back to twenty before this meeting takes place given the momentum and short fuel fire that this one has.

I do not currently have a position in DNDN but plan on starting one shortly.