All Eyes on Dendreon Corp. (DNDN)

Dendreon Corporation (NASDAQ:DNDN) could have an instant $1 billion in sales if the FDA votes to approve the company's cancer treatment drug Provenge on May 1st.  Dendreon shares have increased 700% in the last 12 months, but come May if the company gets the green light, its going to be a gold rush.

Last week Cowen & Co initiated coverage of Dendreon Corp (NASDAQ: DNDN) with an "outperform" rating. The analysts say that their confidence in the potential of Dendreon’s Provenge product is high. “Factors that give us confidence around this catalyst include the positive survival data seen in two Phase III studies, Provenge.s benign safety profile relative to other cancer therapies, support from multiple thought-leading oncologists and the prior positive FDA panel vote,” the analysts mention. “With the drug now supported by survival data from two Phase III studies, a benign AE profile, and the endorsement of leading physicians, we think FDA approval is >90% likely,” Cowen & Co adds.

“We believe robust operating margins combined with unmatched franchise longevity (no generic, biosimilar or other meaningful competition) could support 50%+ stock upside relative to the market,” Cowen & Co’s research note says.

HILARY KRAMER SAYS YES TO DENDREON
Last week on the Nightly Business Report, Hilary Kramer, chief investment officer at A&G Capital Research had this to say about Dendreon Corp. (DNDN):

HUDSON: Certainly plenty of uncertainties out there. You brought some new stock picks, beginning with a biotech firm, DNDN the ticker symbol and Dendreon. What do you like about this one?

KRAMER: Dendreon to me is a blockbuster. It's revolutionary new way to treat cancer. On May 1 the FDA will decide whether or not Dendreon's cancer vaccine for prostate cancer will be approved. If it is we're talking about a billion in sales next year, maybe $5 billion over the next few years, but it's also such a breakthrough and it could apply to other cancers as well.

HUDSON: Seems like there's a big risk however if the FDA doesn't approve it, if you're looking for a port in a storm in a choppy market is this the one?

KRAMER: Of all the biotechs, I love it and it's my biggest position in my portfolio and the reason is that already once it wasn't approved and that's because of the vaccine and the data that that has come out is so compelling and it's increasing life by four and a half months which is just incredible in the world of oncology today.

....

KRAMER: I own Dendreon. I took a position since September 30 in GeoEye and Telvent.

Currently 12% of Dendreon's float is short and shares are just above their 200 and 50 day moving average, the potential is outstanding if the FDA says yes on May 1st, but how much are you willing to gamble?

SOURCES: http://www.benzinga.com/high-probability-of-dndn-receiving-fda-approval-for-provenge
http://www.pbs.org/nbr/site/onair/transcripts/hilary_kramer_of_a_and_g_capital_research_100203/