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DNDN Hammered
By Stock Charts | May 9, 2007
Well, I guess Christmas came a little early this year… for the shorts. I mentioned before that it was quite likely that Dendreon (DNDN) would fall as May 15 came closer, but I certainly didn’t expect today’s premarket ravaging. DNDN opened at $7.20 today, down almost 60% from yesterday’s close of $17.74.
While this isn’t necessarily the end of the line for Dendreon, this certainly strikes a harsh blow to Provenge’s short term prospects. Despite the positive recommendation from an advisory panel that caused DNDN’s skyrocket a few weeks ago, it appears that the FDA is not ready to approve the release of Provenge.
It isn’t clear at the moment what the FDA is requiring but the issuance of an approval letter implies that additional trials will be required. Dendreon is in the process of running more trials, but results aren’t expected until 2010 at the earliest. This is definitely the worst case scenario that Dendreon investors could have faced, short of a outright rejection.
Short interest in DNDN rose from 26.4 million shares in March to 33.9 million shares in April.
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May 29th, 2007 at 10:15 am
[…] the FDA would approve the drug, creating a gold mine for Dendreon. Unfortunately for the longs, it didn’t happen and the stock plummeted from it’s lofty heights. Here’s a look at the stock […]