Dendreon Scores Solid Buy Rating (DNDN)
Dendreon Corporation (NASDAQ: DNDN) was started with a Buy rating and a $36.00 target at Deutsche Bank. The call’s positive expectations are mixed near-term, but the assumption is that Provenge will become a blockbuster product in the fight against metastatic Prostate cancer.
Deutsche Bank believes that Dendreon will receive approval in early 2010. The firm does note that near term stock trading may remain range-bound into an the FDA Approval process. There is a summer analyst meeting where the firm expects Dendreon to provide details on manufacturing and on the company’s marketing strategy.
The expectation is that the approval process will be filed in late 2009 with a subsequent approval in early 2010. Interestingly enough, Deutsche Bank notes that investors are likely placing too little value on the FDA approval chances. It also noted that an additional approval in the European Union is not reflected in the shares.
Dendreon is already indicated higher with more than two hours to go before the opening bell. After a $25.46 close on Thursday, shares are looking up around the $26.75 level. The 52-week range is $2.55 to $27.40.
Technically, this looks to be the second or third highest analyst rating price target with one target reaching $38.00 at a competing brokerage firm.
Jon C. Ogg
June 5, 2009
