UPDATE: Bank of America Reiterates Underperform Rating, Lowers PT on Dendreon Corporation Following Huge 1Q13 Miss, Increased Risks

In a report published Friday, Bank of America analyst Rachel McMinn reiterated an Underperform rating on Dendreon Corporation

, and lowered the price target from $5.00 to $1.00. In the report, McMinn noted, “DNDN announced 1Q13 Provenge sales of $67.6M, down 18% yr/yr and q/q on a pro forma basis, well short of our $80M estimate. While 1Q is a seasonally weak period, DNDN is attributing the unexpected miss to competitive pressures, particularly from its low volume accounts. Management's guidance for a recovery to annual sales growth in 2013 requires 13-18% yr/yr sales growth in 2H13; the likelihood that DNDN can achieve such growth in the face of mounting pressures from oral agents, driven by an unproven DTC advertising campaign while continuing to lose sales infrastructure, lacks credibility. The guidance is particularly troubling given management's limited visibility into the next quarter, let alone visibility several quarters beyond.” Dendreon Corporation closed on Thursday at $4.03.