Replies to post #130101 on Biotech Values

[jq1234]

At current revenue rate, DNDN have too many employees. Per 10-q:

As of September 30, 2011, we had approximately 1,570 employees, approximately 885 of whom were employed in our manufacturing operations and approximately 160 of whom were employed in sales, marketing, and government affairs.

Besides manufacture and sales/marketing/ga, what the other 500 employees do? It is like they have many clinical programs going on.

[exwannabe]

Therefore he thought Dendreon might be a buy in the 8.00's

Can anybody run a model where this makes any sense?

They are not even close to going green. In the last Q the gross profit was about 10% of overhead (and that does not count the restructuring).

So what happens in 3 Qs when they are out of cash again, and nobody has any love?

Your doc can keep trying to start his stalled car on the railroad crossing, but I would be out before the train hits.

[biomaven0]

>Provenge

I suspect a big part of Provenge's problem is that many oncologists just aren't convinced in their hearts that it really works. The notion of a drug that doesn't impact any of the measures that they normally use but mysteriously prolongs lives I suspect produces some cognitive dissonance for them.

I'm guessing that by the time the patient has progressed on Zytiga many oncologists will think it's too later for Provenge. But if you had a drug that provided marked symptomatic relief for bone mets, they would still use it in a late-stage patient.

Peter