Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • R&D 100 Awards

Provenge Problems Plague Dendreon

By Pharmaceutical Processing | August 4, 2011

 

INDIANAPOLIS (AP) — The problems plaguing Dendreon’s only
marketed drug Provenge may be deeper than the company is acknowledging,
industry analysts said Thursday, sending company shares plunging 60 percent before
the market opened.

Late Wednesday, the company cited reimbursement concerns and
withdrew its 2011 revenue forecast.

Brean Murray, Carret & Co. analyst Jonathan Aschoff said
the problem with Provenge is more about a lack of demand and high price than it
is about reimbursement. The analyst said doctors and patients are not too
impressed with its performance.

Aschoff downgraded the company’s shares to “sell”
from “buy” and slashed his target price on the stock to $6 from $60.

The Seattle
drugmaker said it expects only “modest” sales of Provenge over the
second half of 2011 because payers are uncertain about reimbursement for the
costly treatment. It withdrew a forecast of $350 million to $400 million in
sales of Provenge, which trains the body’s immune system to fight cancer.

Provenge sales totaled $49.6 million in the second quarter,
or $51.4 million if discounts to federal and state programs like Medicaid are
excluded, the company said Wednesday. That fell short of Wall Street estimates.

Citi analyst Dr. Lucy Lu was surprised by the announcement
and lowered her price target on the company’s stock to $14 from $36.

“We believe the Street mis-modeled the market potential
of the drug and the primary issue is lack of demand under the current standard
of care for advanced prostate cancer in the U.S.,” Lu wrote.

Provenge was approved in April 2010, and Medicare said in
June that it will cover the treatment, a round of which costs $93,000.

Shares fell $22.13 to $13.71 in electronic trading Thursday.

 

Related Articles Read More >

FDA logo
Ultra Supplement announces recall for undeclared tadalafil
analyzing medical sample
Expert answers to nitrosamine impurity questions
Cardinal Health
Cardinal Health announces $124M settlement of investors’ opioid suit
FDA logo
FDA warns four companies over selling honey tainted with prescription drugs

DeviceTalks Tuesdays

DeviceTalks Tuesdays

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.

Need Pharmaceutical Processing news in a minute?

We Deliver!
Pharmaceutical Processing Enewsletters get you caught up on all the mission critical news you need. Sign up today.
Enews Signup
Pharmaceutical Processing World
  • Subscribe to Our Free E-Newsletter
  • Contact Us
  • About Us
  • Advertise With Us
  • R&D World
  • Drug Delivery Business News
  • Drug Discovery & Development
  • DeviceTalks
  • MassDevice
  • Medical Design & Outsourcing
  • MEDICAL TUBING + EXTRUSION
  • Medical Design Sourcing
  • Medtech100 Index

Copyright © 2022 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • R&D 100 Awards