Breaking Down Dendreon's European Recommendation

Shares of Dendreon popped nearly 10% Friday morning on news coming out of Europe. The CHMP, which is Europe's version of an FDA advisory committee, recommended that the biotech's prostate cancer vaccine, Provenge, be approved.

In this video, health care analyst David Williamson discusses what this recommendation means for Provenge's chances of approval, Dendreon's likely next move, and whether this will serve as a catalyst for shares going forward.

Rising health care costs continue to be a hotly debated topic, and even legendary investor Warren Buffett called this trend "the tapeworm that's eating at American competitiveness." To learn more about what's happening to the health care system -- and how to potentially profit from this trend -- click here for free, immediate access.

Follow David on Twitter: @MotleyDavid.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 02, 2013, at 12:00 PM, lebronz wrote:

    Surprising recommendation? Why?

    Could cause them to re-visit their models? Why, when dndn has seen short interest move from 14 million back in August 2011 to almost 53 million TODAY!

    1st quarter results were rough because the captured CEO Johnson has been siphoning off patients from quarterly revenue to all the NEW TRIALS he's been managing/running (Zytiga/pv, Xtandi/PV, the 1500 post FDA marketing required by the FDA trial, Yervoy/PV, all the new IIT's...etc...etc... etc...

    As long as short interest is enormously high at 53 million and doesn't trend downward, you see a $4 stock price. The new CEO Johnson may want 100's of 1000's of more shares for himself and his team at the end of the year if the stock remains at $4

    btw, you mention stock pops in the stock price and that's comical. Do you really think its something worth mentioning like someone was buying then oops, realized I better sell dndn?

    Institutions own > 88% of dndn today including Vanguard who owns over 8 million. The trend of institutional holdings has only steadily increased since FDA approval back in April 2010. Many big players sure are confident while they are massively shorting at the same time, don't cha think?

    You're looking spry David. Keep up the gr8 informative work!

    Leb

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2518672, ~/Articles/ArticleHandler.aspx, 11/24/2014 5:03:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement