Wedbush is sticking by its $0 price target for Dendreon (DNDN +9.1%) despite rumors that the company is pursuing a sale (here, here, and here).
Analyst David Nierengarten thinks it's unlikely that DNDN will find a buyer given that "the Provenge franchise has never been profitable, and management has repeatedly stated that cash flow break-even could occur at $100M quarterly run rate, a sales pace that has never been achieved."
Nierengarten also says there's "no reason for an acquirer to pay over EV" and drives the point home by noting that "the maximum net profit margin [looks to be] well below the typical big Pharma's 20%+ margins, making a potential buy-out a negative for the acquirer."
Dendreon (DNDN) will present Provenge data at the European Cancer Congress.
The company says results from two studies show a "robust immune response when Provenge is administered with abiraterone acetate [and] suggest long-lived immunological memory to Provenge years following initial treatment." (PR)
Provenge and DNDN have their fair share of detractors (here and here) but somebody seems to like today's press as the shares are trading 4% higher premarket.
The European Commission has granted Dendreon (DNDN) marketing authorization for its Provenge treatment for prostate cancer, with the approval also including Norway, Iceland and Liechtenstein.
It's a rare ray of sunshine for Dendreon, which seems to have few fans on Wall Street these days amid poor sales for Provenge. In June, Wedbush analyst David Nierengarten predicted that even with EU approval, the drug has little chance of success.
RBC's Michael Yee is out with some commentary on Dendreon (DNDN +1.4%) which has suffered through an unusually dismal string of negative chatter from the Street including a Wedbush note which included a price target of $0.
Yee says there's a 70% chance the shares trade at current levels or below (down to $1).
There's also a 30% chance DNDN strikes a partnership or sells assets which could propel the stock to $3-4.