Dendreon (DNDN) jumps 20% after the company's Q4 earnings top expectations and the company says it plans to sell Provenge in Europe, beginning with Germany and the UK. The EMA granted marketing approval in September.
Dendreon will initially look to sell the therapy to medical institutions that treat large numbers of prostate cancer patients; once production is ramped up, the company will consider making Provenge more widely available.
EU approval covers 28 countries in the Union as well as Norway, Iceland and Liechtenstein.
Dendreon's FY revenues were $283.7M, in line with consensus, while losses per share was $1.95, worse than forecasts of $1.74.
Dendreon (DNDN -6.1%) expects Q4 revenue to grow ~10% Q/Q to $74.8M, topping Wall Street's consensus, but Roth Capital still maintains its Sell rating and $2.60 price target, citing a long road ahead for DNDN's Provenge prostate cancer therapy.
Roth will be watching for trial updates for Provenge to be issued later this month; the drug is approved in Europe, but the firm believes it faces great hurdles in the EU due to varying reimbursement landscapes.
DNDN also said this week it plans to save ~$125M/year with recent restructurings, but the firm says the bigger question is how it will deal with the $600M in convertible debt that comes due in two years.
Dendreon (DNDN -2.3%) slips as investors and analysts digest the company's Q3 results.
Provenge sales missed expectations and some, like Stifel's Joel Sendek, are skeptical of the company's ability to stay afloat. Sendek has the shares at Sell with no price target.
Meanwhile, William Blair's Katherine Xu is holding out some hope, saying that the company could manage to turn a profit if Provenge sales could hit $90-95M/quarter (so, at least 32% above Q3 sales). The price target at William Blair is $2.
For its part, Needham downgraded the shares to Neutral from Buy, saying the company's cost-cutting efforts may be "too little too late" despite "clinical data support[ing] wider and earlier use of Provenge."
Brean has reportedly cut its price target to $0.50.