Dendreon (DNDN) Halted
Shares of Dendreon (DNDN, $35.87, no change) have been halted today due to pending news concerning its cancer drug, Provenge. Many of our subscribers know we have been following this company for years and we were one of the first believers of the company when the stock was under $5.
We followed their clinical trials and we brought you extensive coverage of the entire approval process which had powered the stock to an all-time high of $57.67. We told you to buy the stock when the talking heads (even Jim Cramer) told you to stay away. We told our subscribers to buy call options along the way because we had a good feeling this drug was going to win approval.
Today, the stock has been halted as a Medicare advisory panel decides on whether to accept Provenge. In other words, they are meeting to discuss and vote on the $90,000 price tag for the one month, three dose cycles.
The drug is Dendreon’s only money maker so this will be an important decision. Provenge is an incredible cancer medication and a setback will crush the stock. An acceptance will likely push the stock past $40-$45. The Medicare approval is critical for Dendreon’s success as 70% of men eligible for Provenge are covered by the program.
We currently have an open option trade on Dendreon that are subscribers are in and we are betting on good news. However, if the news is negative, there will be an opportunity to play the downside as the stock will likely fall below $30.
When we hear the breaking news, we will update you, and if there is a trade, we will let you know.