In the following video, Fool analysts David Williamson and Austin Smith look at the management running small biotech Dendreon (NASDAQ: DNDN).
Former CEO Mitch Gold deserves a lot of the credit for getting prostate cancer drug Provenge approved, but also a lot of the blame for the delays in getting the product launched, David says.
While many like to blame Wall Street for hyping Dendreon, the hype originated with the company, David says. Today, the numbers Gold expected for the drug appear comically high.
He also oversaw a manufacturing expansion that led to chronic oversupply, while his sales team failed to persuade doctors to use the drug, David says.
New CEO John Johnson came in with a strong reputation as the head of Imclone Systems, which eventually became part of Eli Lilly. David says he seems to understand the challenges facing Provenge.
His work to restructure the company is also a step in the right direction, David says.
