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Is Danger Lurking in Dendreon's Future?

By Brenton Flynn and Dave Williamson - Nov 6, 2012 at 4:44PM

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What investors need to know.

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.

 

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