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Biotech / Medical : DNDN - Dendreon Corp. -- Ignore unavailable to you. Want to Upgrade?

To: DewDiligence_on_SI who wrote (709)	8/4/2011 8:59:46 AM
From: IRWIN JAMES FRANKEL	Read Replies (1) \| Respond to of 751

>>If this were the only problem, why would DNDN be laying off employees in manufacturing? Could be management choice - which may or may not be an error. IF David is right, then management had a choice. They could back off on the expansion and let the economics of the delivery system right itself. (That choice implies layoffs.) Or they could create a backup financing/risk shifting support system for the prescribing physicians. The former is far easier. ij

To: DewDiligence_on_SI who wrote (709)	8/5/2011 12:04:24 AM
From: DewDiligence_on_SI	Read Replies (1) \| Respond to of 751

DNDN article in Friday’s WSJ: online.wsj.com ›› Analysts questioned whether the company's explanation told the whole story. They pointed out that a company expecting a short-term problem likely wouldn't take the drastic step of cutting jobs [especially jobs in manufacturing]—often the move of a company adjusting to the new realities of its business model. "Management's reason is addressable reimbursement issues whereas there are many reasons to believe this is at least in part also a permanent demand issue," Goldman Sachs analyst Sapna Srivastava said, in a note to clients. ‹‹ DNDN's explanation is total bullshit, IMO.