UPDATE: Deutsche Bank Downgrades Dendreon Corporation to Sell, Lowers PT on Approaching Headwinds

In a report published Friday, Deutsche Bank analyst Robyn Karnauskas downgraded the rating on

from Hold to Sell, and lowered the price target from $6.00 to $1.00. In the report, Deutsche Bank noted, “We see several headwinds over next 12-18 mos that in our view are likely to erode current Dendreon shares. Provenge sales continue to disappoint and the co remains unprofitable. Per our calculations, even if there is drastic restructuring & significant cost cuts, spend may still outpace rev growth in the near term. Consequentially, we believe that the terms of a debt refinancing may have a negative impact on equity holders. We are downgrading to Sell b/c rev growth may not outpace cost cuts & increasing debt expense costs associated w/ a refinancing. We are now modeling peak sales at $450M vs. $517M prev.” Dendreon Corporation closed on Thursday at $3.19.