Dendreon Surging On High Volume (DNDN)

Shares of Dendreon (NASDAQ: DNDN) are moving higher on above average volume this morning. The stock has gained 5.05% to $40.12 this morning in early trading. A total of 2.25 million shares have already changed hands compared to a daily average of 4.06 million. In the last month alone, DNDN has gained 12.38% as the FDA approval date for Provenge is fast approaching. A decision regarding DNDN's potentially blockbuster prostrate drug, Provenge, is expected by May 1. Dendreon, as of right now, is not a profitable company, and most of the firm's $5.32 billion market cap hinges upon the FDA approving the drug.

One hedge fund that is known to trade in shares of Dendreon (DNDN) is Stevie Cohen's SAC Capital. In January, the firm filed a 13G with the SEC disclosing a 5.5% ownership stake in the company. SAC is known for trading in and out of a myriad of stocks, so it is very likely that they are a major player driving the price action in DNDN on any given day.

At this point, Dendreon remains a speculative investment, but if Provenge is approved, it could result in continued gains for shareholders. If the drug is not approved, however, it is likely that the share price will be hit very hard. The Dendreon story has become quite a saga on Wall Street, and it would appear that as we get closer to May 1st, there will continue to be plenty of money made and lost in this stock.