$DNDN on Motley Fool Back up the TRUCK! $10s+ coming!!
Dendreon Why are investors shorting Dendreon?
Struggling biopharmaceutical company Dendreon continues to draw the ire of short-sellers because of its miserable management of its lead drug, Provenge. Projected to deliver peak sales north of $4 billion at one point, metastatic prostate cancer immunotherapy vaccine Provenge will be lucky to top out around $400 million to $500 million in sales given how fierce competition is in the U.S. and EU. Dendreon has also been burning through its once-amazing cash pile, and is in the process of its second restructuring since last year.
Is this short interest warranted?
Dendreon's share price is definitely getting low enough where shorting may no longer be the smartest thing to do here, just in case a suitor does step up and decide to buy the company to gain a hold of Provenge as well as Dendreon's proprietary immunotherapy platform. Dendreon is also moving to drastically cut costs, and will continue to work toward profitability by shaving costs further. Although that doesn't bode well for its long-term growth outlook, it should keep Dendreon from burning through a copious amount of its remaining cash on hand. I'm still not a fan of Dendreon here, but with the vaccine now approved in the EU and more cost cuts on the way, I'm willing to be lured into giving Dendreon one more chance to prove that it belongs.
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