Dendreon (DNDN) is sinking after Johnson & Johnson (JNJ) reported yesterday that its Zytiga prostate treatment significantly improved survival rates in certain prostate cancer patients. Dendreon has its own prostate treatment, Provenge. A number of research firms wrote that the positive data on Zytiga is a material negative development for Dendreon. Roth Capital believes that Provenge is now at greater risk of losing market share. Roth slashed its target on Dendreon to $6.70 from $12 and maintains a Neutral rating on the stock. Meanwhile, Jefferies warned that Provenge could become a niche drug as a result of competition from Johnson & Johnson and Medivation (MDVN), which has its own prostate cancer treatment, MDV3100. Jefferies maintains a $5 target and Underperform rating on the stock. In early trading, Dendreon dropped 31c, or 4.59%, to $6.45.
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