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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of drug developer Dendreon (NASDAQOTH: DNDNQ ) climbed as high as 10% today after the European Medicines Agency endorsed its prostate cancer treatment Provenge.
So what: The European Commission, which approves drugs in the European Union, typically relies heavily on the recommendations from EMA, so today's news certainly increases the chances of an eventual Provenge launch in Europe. Of course, sales of Provenge in the U.S. have slumped on high costs and concerns among doctors over its relative effectiveness, giving traders good reason to use the opening pop to take some money off the table.
Now what: The EMA will make its last recommendation to the European Commission in the coming months, with the EC expected to make a final regulatory decision in the second half of 2013. "We are finalizing our plans for a capital-efficient launch in Europe, including evaluating our partnering options," said Chairman and CEO John Johnson. "We look forward to bringing the innovative treatment of PROVENGE to patients around the world." So while Dendreon might still be too speculative for average investors, today's positive news, coupled with the fact that the shares remain well off their 52-week high, make the stock an interesting pick for biotech-savvy Fools.
While you can certainly make huge gains in biotechs like Dendreon, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
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