For his Biotech and Medtech portfolio, Covestor model manager Jeremy Zhou invests in the US healthcare industry. Current top holdings include Teva Pharmaceutical Industries (TEVA), Transcept Pharmaceuticals (TSPT) and Biodel (BIOD).
On March 16, Zhou added a position in Dendreon Corporation (DNDN), a biotechnology company focused on the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients.
Zacks Equity Research reported on DNDN receiving new FDA expansion approval:
Dendreon Corporation recently received clearance from the U.S. Food and Drug Administration (FDA) to expand manufacturing facilities for its cancer vaccine Provenge in the US. The company’s New Jersey facility, which is currently operating at 25% capacity with12 workstations, can now be fully operational with 48 workstations.
We believe the approval will significantly increase the availability of Provenge which will help Dendreon to meet pent up demand for the vaccine. Dendreon expects to have 500 centers where patients can be treated with Provenge by the end of 2011, well above the current 50 centers.
VFC’s Stock House noted at SeekingAlpha the significance of this:
Since receiving FDA approval for Provenge, its prostrate cancer drug, early last year, Dendreon has been unable to capitalize on the full market potential for the product because the company’s manufacturing capacity has been unable to meet the robust consumer demand for the product.
That changed last week when the FDA approved 36 additional workspaces at the company’s New Jersey facility, a significant increase over the 12 that were already in place and working at 100% capacity.
…
Dendreon was a company doubted by many for years (including some who jumped on the bandwagon at an the opportune time – after approval) as Provenge developed through the late stage pipeline, and there are still those out there who believe the best days for this company have passed.
While that may be somewhat true in terms of potential percentage gains in share price – since the days of DNDN for $3 are finished – the golden age for Dendreon may still be in its infant stages.
The company can still look forward to full commercialization in the US, expansion on the international markets, and the advancement of the remaining pipeline products.
The Dendreon story is still developing, and slowly all the logs are being put in place, and for that reason, DNDN still holds all the potential of a long term winner.
At the end of the day, this is a company that was the first to bring a groundbreaking new immunotherapeutic cancer treatment to market, and that’s an item not too shabby to have on a resume.
DNDN closed up 0.28% on 3/18.
Sources:
“DNDN to Make More Cancer Vaccine” Zacks Equity Research, 3/14/11.
“Dendreon’s Golden Age Is Still in Its Infancy” VFC’s Stock House. SeekingAlpha, 3/14/11. https://seekingalpha.com/article/258011-dendreon-s-golden-age-is-still-in-its-infancy
