Wedbush Comments On Dendreon's Approval Of Atlanta Facility By FDA

Wedbush Securities has published a research report on Dendreon DNDN after discovering that the FDA approved the company's Atlanta Provenge facility. In the report, Wedbush writes, "[W]e agree with management that urologists' practices tend not to have the working capital required to buy Provenge for patients and then wait for reimbursement. While this issue could be solved in our opinion by DNDN using its balance sheet to extend credit to urologists, it remains to be seen how DNDN will address this issue. Ultimately, however, patient demand and profitability will guide the top- and bottom-line for DNDN, and here we believe that significant downside risks remain." Wedbush reiterates its Underperform rating and $8 price target on Dendreon, which closed Friday at $11.87.