Biotech Values

[DewDiligence]

If DNDN has played its cards right, it could’ve been a profitable little biotech company with a nice niche product (Provenge). Instead, management incessantly touted Provenge as a blockbuster breakthrough that “fundamentally changes the treatment of prostate cancer.”

Provenge does no such thing, of course, but management evidently believed its own spin, causing it to take on a large amount of debt and build three manufacturing facilities before it was known whether even one of them was fully needed.

No matter how you slice it, it’s a screw-up of monumental proportions.