UPDATE: Bank of America Downgrades Dendreon to Underperform on Provenge Demand Concerns

Bank of America lowered its rating on Dendreon Corporation DNDN from Neutral to Underperform and reduced its price objective from $13 to $6. Bank of America commented, "We are downgrading DNDN from Neutral to Underperform based on concerns that Provenge demand will underperform expectations for the next several quarters, that the business will not reach profitability unless demand picks up meaningfully from current levels, and that a take out valuation on this base assumption does not represent significant upside from current levels. While new management has not had more than a few months to make changes in the organization and improvements on cost cutting remain to be enacted this year, ultimately Provenge demand settling at current levels suggests downside to valuation." Dendreon Corporation closed at $6.71 on Tuesday.