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.
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.