Before European approval: $17.35
COGS for the quarter reported was 77%. To further cut costs, the corporation announced the decision to close its New Jersey manufacturing facility, something it intended to implement fully in the fourth quarter of this year. According to Dendreon's CFO Greg Schiffman at the time, "[F]ollowing the close of New Jersey operations, we expect the cost of goods sold of less than 50% down from 77% this quarter."
8 as a nominal value for purposes of the calculations below. First, let's estimate DNDN's revenues for the year at $325.38 million. Multiplying this by 8 and dividing by 150 million shares outstanding yields a takeover value of $17.35 per share, more than a 200% premium
After European approval and to further cut costs 35% :$35
Even greater reductions should be expected in the first two quarters on 2013. General and Administrative (G&A) expenses are expected to drop by more than 35% over the next 9 months. As well, significant improvements in the automation of operations at the Atlanta, GA, and Seal Beach, CA, manufacturing facilities also are expected to contribute to the reductions in COGS.
Sentiment: Strong Buy
You are all butt fiddlers.
If someone is interested in this inferior product, then he waits until this train reck is finally broke and buys the assets without the debts.
Whoever takeover DNDN will have deep pocket, marketing muscles, and political clout to make Provenge a super Mega blockbuster. And they know it !
1/ They will advance reimbursement money to doctors without having to wait for insurance reimbursements.
2/ They will use their own sales forces currently marketing anti-cancer drugs to sell Provenge.
3/ They will have the means and personels to implement full Provenge automation which will reduce COGS.
4/ They will use their lobbyists to move Provenge to early-stage, pre-chemo, pre-mets. They will also promote Provenge to be use in combination with or in sequence to other hormonal PC drugs such as Zytiga or Xtandi.
It's a no-brainer and they will fight each other to acquire Dendreon.
Whoever acquires Dendreon will become anti-cancer immunotherapy market leader overnight, for Provenge is the only active anti-cancer immunotherapy approved by both FDA and EU/EMA in the world.
Sentiment: Strong Buy
I agree 100%
DNDN knows this and even though their financial state gives them less leverage, their patents, R&D and WORLDWIDE RIGHTS gives them the upper hand.
I don't think Big Pharma will wait for DNDN to go bankrupt - too many UNKNOWNS with BK courts.
Are you for real? If anyone on Wall Street believed DNDN might be bought out for say your low price of $17 then this stock will close around $10 tomorrow. Fact is they are looking for a buyer before they go bankrupt. With all their debt we will get $4.25 on a buyout. And with that I still lose money.