Investors are ecstatic about Dendreon's
I'm in the "that's great, but …" camp. It's time to move on to other news. Two drugs also received late-week decisions from the Food and Drug Administration, and another is scheduled to hear this week.
On Friday, the FDA approved Vimovo, an arthritis drug from Pozen
Vimovo is a combination of painkiller naproxen and AstraZeneca's heartburn drug Nexium. Non-steroidal anti-inflammatory drugs (NSAIDs) -- such as Advil and Celbrex from Pfizer
Vimovo won't be in the same class of sales as Dendreon's Provenge; the latter should have no problem hitting blockbuster status, while Vimovo might be lucky to get $300 million in sales, according to one analyst. But with a market cap that's less than one-twentieth the size of Dendreon, Pozen doesn't exactly need sales to be that high.
Bristol-Myers Squibb
Looking ahead, tomorrow is InterMune's
Given the amount of uncertainty over what the FDA will do about pirfenidone, I expect InterMune's shares price could increase a lot more than Dendreon's 35% jump after the decision is handed down.
You're likely to hear a lot more about Dendreon in the coming months: its first treated patient, updates on its new manufacturing plant, potential suitors, and the list goes on. Read the press releases and articles, especially if you're a shareholder. Just don't forget that there's plenty of money to be made in biotech outside of Dendreon, too.