Wedbush Reiterates Underperform, $5 PT On Dendreon

In a note out this morning, Wedbush reiterated a buy rating and $5 price target on biotech firm Dendreon DNDN, implying significant downside from where the shares currently trade. The company announced it's selling its royalty interest in Victrelis for $125 million. “While a positive for the company's balance sheet in the near-term, we still estimate that DNDN will have to access the capital markets, now in mid:13, rather than YE:12. Given our estimates for DNDN's cash burn, this move delays a share offering by 6 months. Taking into account this additional cash, our cash burn estimate over the next 6 quarters is ~$315M, which would reduce the company's cash balance to $218M by Q2:13,” Wedbush said in the note.