Dendreon (DNDN +19.8%) skyrockets to $7.49/share amidst rumors Sanofi (SNY) is looking to acquire the company for $11/share. Also, Summer Street is starting coverage with a Buy and $18 PT, arguing the Street has "factored in an extremely bear-case scenario" amidst concerns about weaker-than-expected sales of its Provenge prostate cancer drug. It sees Provenge growth and a "turnaround led by new management" driving shares higher.
Savient Pharmaceuticals (SVNT -12.6%) shares plunge after Dendreon (DNDN +4.6%) swipes its CEO, as John Johnson will take the helm at DNDN on June 30 after only one year at SVNT. Deutsche Bank says Johnson has a history of M&A and his fresh perspective might benefit DNDN's near-term strategy, noting his success in selling Imclone to Eli Lilly and attempts to sell SVNT.