Activists Gathering Up Behind Dendreon (DNDN)
Dendreon Corp. (NASDAQ: DNDN) is perhaps one of the more controversial cancer stocks on the market right now. Its PROVENGE failed to win FDA approval last year and the controversy has never gone away. Many feel that FDA evaluation process was flawed or that there were conflicts of interest that kept it from having a fair review. The flipside of this argument is that there are arguments that it should never receive approval and that the results on larger groups are questionable.
Either way, fortunes were made and lost last year on more than one occasion by those who bet for Dendreon or against it.
But next week there is going to be a nine-city protest scheduled by activists protesting the FDA’s decision. CareToLive is sponsoring the protests. The move will be to make PROVENGE available to any men with late stage prostate cancer.
There has already been at least one Congressional action that may lead to further inquiries on this matter.
The FDA may have its own justifications for its decision, but the problem is that when you have some reports that show a direct extension of life you can’t tell someone with late stage prostate cancer that there are side effects or that there are efficacy issues in larger groups. Unfortunately it is like telling someone on death row that they shouldn’t be eating eggs because of the cholesterol and risks of salmonilla.
Bizjournals.com noted that the rallies are scheduled for Seattle, Chicago, New York, Philadelphia, Cleveland, Madison, Dearborn, and Tampa.
Dendreon didn’t even get much of an ASCO boost over the last week and shares have come off about 10% from last week’s highs. It will be interesting to see the reaction next week. Interviews with dying patients who say that the FDA is blocking their last chance of living longer isn’t going to shine that brightly on the FDA.
Just last month, Dendreon announced a new capital raise that will help get the company through 2008 and 2009 while this saga continues.
Those who suffer from late-stage prostate cancer understand the inevitable outcome for this. They are not expecting or demanding a miracle. But an extension to their life is currently not on the market or is being held back from them.
Jon Ogg
May 22, 2008