Dendreon Corp. (DNDN) shares more than doubled in early morning trading, but this may be somewhat misleading.

Quick recap: Dendreon yesterday (Tuesday) released detailed results of its innovative prostate cancer drug Provenge. Ahead of the results, the stock first climbed steadily from $22.00 to about $24.50 at 1:24 p.m., only to plunge some 45 percent to $11.81 before trading was halted at 1:27 p.m. That's when Nasdaq's oversight body initiated a brief probe.

The Nasdaq Stock Market then e-mailed a statement, saying it will let stand two minutes' worth of transactions that it initially suspected were the result of a brokerage error. Trading resumed at 6:15 p.m. and shares immediately traded up over 120 percent to around $26.50.

This morning, shares opened at $26.82, but are now back at above $24 a share. The stock still registers over a 100 percent gain, but in actuality, the reaction to the Provenge news has been somewhat flat, likely because expectations were met.

Provenge, Dendreon said Tuesday, extended median survival in a large clinical trial by 4.1 months and increased three-year survival by 38 percent compared to a placebo (31.7 percent versus 23.0 percent). It surpassed the 22 percent goal required to meet FDA approval.

If, before the detailed results, analysts had estimated sales of Provenge would be $1 billion a year, now Lazard Capital Markets estimates sales would be $2 billion a year. This could provide serious top line growth to the biotech company and pave the way to more such treatments to other drugs.


Increase your money and finance knowledge from home

Behavioral Finance

Why do investors make the decisions that they do?

View Course »

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Add a Comment

*0 / 3000 Character Maximum