No stock sums up biotech investing quite like Dendreon (NASDAQ:DNDN), the company behind a novel prostate cancer treatment called Provenge. In what amounts to a case study on unchecked optimism, Dendreon shares were still flying high just over a year ago on exuberant sales projections. Then things took a turn for the worse. Management pulled revenue guidance, and shares collapsed.

Before the collapse occured, management used a soaring outlook, and stock price, as an opportunity to raise cash. However, that money was raised in a way that might come back to haunt it in the not-too-distant future. Follow along in the following video as Brenton and David go into more detail on a future obligation that potential investors must be aware of.

 

Brenton Flynn has no positions in the stocks mentioned above. David Williamson and The Motley Fool own shares of Dendreon and Johnson & Johnson. Motley Fool newsletter services recommend Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.