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    DNDN to Raise $75 Million

    By Stock Charts | June 4, 2007




    In our latest episode of the Dendreon (DNDN) saga, it appears that the company is looking for additional financing, possibly for additional clinical trials for it’s cancer drug, Provenge. I had speculated previously that DNDN may be looking for additional sources of funding after it’s stock price took a heavy beating following it’s failure to obtain FDA approval. From the AP press release:

    Biotechnology company Dendreon Corp. said Monday it plans to offer $75 million convertible senior subordinated notes due 2014 in a private placement to institutional buyers.

    The interest rate, terms of conversion, offering price, registration rights and other terms of the notes will be determined by negotiations between the company and the initial buyer of the notes.

    Dendreon expects to grant the buyer a 30-day overallotment option to purchase up to an additional $25 million notes.

    The company plans to use the proceeds to finance the future manufacturing and marketing of its prostate cancer vaccine candidate Provenge, and to support research and preclinical development for other product candidates.

    In my last post on Dendreon, I suggested that the 50-60% jump we saw after the positive news regarding the FDA was unwarranted. Since then, shares have retreated significantly, and this latest round of financing has investor spooked, dropping the stock 5% in pre-market trading.

    At this point, DNDN is a purely speculative play, as it is impossible to gauge if and when Provenge will be approved. There is no question that if Provenge is approved, Dendreon and it’s investors stand to benefit tremendously, but at this point I wouldn’t put my money on it.

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