UPDATE: Canaccord Lowers PT on Dendreon Corporation from $11 to $6

Canaccord maintained a Hold rating on Dendreon Corporation (NASDAQ: DNDN) and lowered its price target from $11 to $6.

Canaccord wrote, “DNDN reported Q2 Provenge net revenue of $80.0M, below consensus of $85.8M and CGe of $84.9M and sequentially down QoQ (-2.4% vs. low-single- digit growth guidance; not attributed to Zytiga), simultaneously with a strategic restructuring to reduce costs by ~$150M annually (enabling DNDN to turn cash-flow positive at $100M/Q in revenue compared to $125M/Q previously), consisting of: 1) eliminating >600 positions over the next 12 months and 2) closing the New Jersey manufacturing facility by YE12, reducing COGS to <50% (based on current sales levels – management expects further revenue growth and automation to drive COGS lower).”

Dendreon Corporation closed at $6.18 on Monday.

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