Dendreon (NASDAQ:DNDN) is one of the most popular day trading stocks on the market. Here are 3 new data points giving short sellers ammunition for huge gains:
1) Following the trials of cancer drugs from Johnson & Johnson (NYSE:JNJ) and Medivation (NASDAQ:MDVN) that yielded positive results so far as Roth Capital is concerned, the company believes that Dendreon’s Provenge is more likely to lose market share, thus its target on Dendreon was lowered from $12 to $6.70 and it maintains a Neutral rating.
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2) Provenge is thought by Wall Street firm RW Baird to likely have difficulties getting to a point of commercial acceptance, following this weekend’s ASCO meeting at which both Bristol Myers (NYSE:BMY) and Medivation published stron trial results for their prostate drugs. Baird has pulled back its 2014 and 2015 estimates for Provenge and also opined that the drug have a hard time remaining relevant. That firm rates the shares as Neutral.
3) Analysis that has been published on Johnson & Johnson’s Zytiga is seen by Jefferies as damaging to Provenge’s prospects, and the firm also said it thinks that Medivation’s MDV3100 could even or beat Zytiga on overall survivability, meaning that Dendreon’s medication could be relegated to a niche spot in the market. Jefferies rates Dendreon shares as till Underperform, with a $5 price target.
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