UPDATE: Wedbush Reiterates Underperform Rating, Lowers PT for Dendreon Corporation
In a report published earlier today, Wedbush Securities Inc. reiterated its Underperform rating for Dendreon Corporation (NASDAQ: DNDN), but slightly lowered its price target from $5.00 to $4.00, related to how Dendreon's prostate cancer drug Provenge might be affected by new treatments.
Wedbush went on to say “We would caution investors who believe that DNDN could be a takeover target. In our view, an acquirer would be very unlikely to purchase a low-margin product like Provenge in a rapidly evolving treatment paradigm. While some might be tempted to think that DNDN's ~3x sales multiple might make it attractive to an acquirer, our view is that the low multiple to current year sales estimates is justified, with Provenge's low margins and uncertain market position.”
Dendreon Corporation closed on Friday at $6.76.
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