Brean Murray Carret & Co. Maintains Sell on Dendreon After 4Q Revenue Beat

Brean Murray Carret & Company has published a research report on Dendreon (NASDAQ: DNDN) after the company beat 4Q revenue estimates.

In the report, Brean Murray writes, "This result was clearly viewed as a positive for Dendreon, given the stock reaction that we view as way overdone, but we emphasize the competition to come from Zytiga once clinically successful and approved in the pre-chemotherapy setting, as well as from MDV3100 off‐label starting late in 2012. We emphasize the immediate benefits (tumor reduction, pain reduction, PSA reduction) with both Zytiga and MDV3100, as well as our expected superior overall survival results in the pre‐chemotherapy setting, as our reasons for believing that the favorable toxicity profile of Provenge is not enough to allow Provenge to compete well in the face of these two drugs. This competitive landscape, which does not even mention new potential drugs beyond Zytiga and MDV3100, as well as the unscalability of Provenge manufacture, should also keep Dendreon from ever getting acquired, in our view. We also have not seen the COGS generated for 4Q11, which have been a negative surprise in most of the recent quarters, thereby adding risk to the full quarterly disclosure after today's volatility."

Brean Murray Carret & Company maintains its Sell rating and $6 price target on Dendreon, which is currently trading up $3.28 from yesterday's $7.60 closing price.