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Dendreon Is Not In Trouble!

|Includes:Dendreon Corporation (DNDN)

Just a short note to counter the shameful "article" by Brian Orelli over on Motley Fool yesterday evening, with what one can only characterize as the intentionally misleading headline of "Dendreon's in Trouble".

Unfortunately unlike this blog on Seeking Alpha, such dreck on Motley Fool routinely makes it onto the wires and also onto the Yahoo headlines for the subject stock--and so can have an effect on the share price and on market sentiment about a company. It's sad but true that a scary headline like that can trigger some to sell first and ask for actual facts later.  It's probably not a coincidence that Dendreon shares are trading down as I write this.  I have to admit that even I, who totally stay on top of developments at Dendreon because I am invested in the company, hurriedly clicked on the headline in Yahoo to see what, if anything new, was up.

Anyway, the truth is that Dendreon is not in any kind of trouble and that those who read Orelli's post past the irresponsible headline would have found out that he was writing about the old news (August 3) that the FDA had sent Dendreon a warning letter that it didn't like some of the material in a promotional brochure about Provenge that sales reps were leaving with doctors--such horrible stuff as not including the confidence interval in the p value of the survival advantage Provenge demonstrated in its pivotal study.  

All Pharma companies get such letters for approved treatments and the cure is to pull the offending material and replace it with material that pleases the anal nit pickers at the FDA.  Normal sales force nuisance stuff.

The incident does, however, shine a light on another phenomenon--websites gratuitously or even maliciously including references to hot stocks like Dendreon just to get hits.  In this brave new internet world in which any schmoe can become a "journalist" just by widely publishing on the internet, there is a very real danger of harm being done by un-policed posters who have no familiarity with journalistic ethics or responsibilities and will publish whatever they need to publish to get eyes on their stuff.

Com'n Motley Fool!  Allowing that headline when you know it will panic some and mislead?  And knowing it's wrong?

Shameful. 

Disclosure: Long Dendreon

Stocks: DNDN