Dew,
DNDN with their $40 price was priced to perfection so I am surprised that it hasn't dropped more. One of main my criticisms of DNDN was how difficult it was going to be to scale up. The sales numbers that were being thrown around were absurd with analysts talking about $1 billion is sales in 2011 as if it were nothing and easily reached. Making Provenge is a much more labor intensive process than most therapies as it must be personalized, and as such, will be far more prone to disruption, delays and increased expenses.
It liked this excuse by the CEO with hyperbole thrown into it.
<<CEO Mitchell Gold asked investors to be patient as the company builds out its infrastructure to make Provenge.
“It’s one thing to launch a new drug,” Gold says. “It’s entirely different to launch a new class of therapies that dramatically changes the paradigm of cancer care.”>>
The broad class of treatments called immunotherapy does have the promise to dramatically change the paradigm of cancer care, but that isn't relevant to DNDN right now and Provenge isn't that therapy. What matters is that yes, it will be difficult to expand production of Provenge, which is stock is still over-priced since many questions remain as to how quickly or how reliably they can expand production.
AI
