Dendreon [DNDN 7.40 2.20 (+42.31%) ] put out the long-awaited press release with the interim results of the key study of its prostate cancer drug Provenge. The company essentially says the trend towards extending the lives of men with the disease looks promising, but at the midpoint it hasn't quite yet met the pre-specified (by the FDA) threshold for potential approval.
So, patients and investors will now have to wait until the middle of next year for the final test results. I wonder if they might be available in time for the prestigious American Society of Clinical Oncology meeting which takes place the end of May. Not surprisingly, DNDN shares were halted for trading this morning. When they reopened they hit a new low and a new high. How's that for volatility?
o Dendreon Stock: Who Owns It
David Miller who writes the investment newsletter Biotech Stock Research and who's been following this story for years says the data might have convinced naysayers that Provenge might actually work. Remember, there's also a huge short interest in DNDN, so that could be fueling the move up as well. If the results had been more positive Miller predicted the stock would have surged again to $17-$22. He's a believer in Provenge, but in a recent interview he cautioned investors about Dendreon, the stock. "This is not a stock, as is no biotech stock, but particularly Dendreon, that you should have a significant portion of your retirement savings invested in. It's just too darn volatile." Apparently a couple of people on his staff, though, have a stomach for it and are owners of DNDN shares.
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