Deutsche Bank Defends Dendreon (DNDN) Despite Strong Zytiga Data; Maintains Buy

Shares of Dendreon (Nasdaq: DNDN) are trading down nearly 7 percent Monday morning as investors are responding to presentations at the American Society of Clinical Oncology over the weekend. Much of the negative sentiment surrounds positive data on J&J's (NYSE: JNJ) Zytiga.

Certainly not helping the downward pressure, at least three firms issued concerning research notes on Dendreon Monday morning. While a Baird analyst said the road is getting tougher for Dendreon, Jefferies warned of looming competition and Wedbush reiterated an Underperform rating.

Deutsche Bank's Robyn Karnauskas and Navdeep Singh, however, are taking the other side of the trade this morning. The analysts said, "The 9 month benefit is numerically better than Zytiga pre-ASCO expectations which were around 5-6 months and Provenge which provided a 4.1 month survival benefit (stat sig). However, we continue to believe Provenge will be used in sequence with Zytiga & sales should continue to increase (maybe at slower pace now) despite Zytiga data. We believe the ongoing sequencing trial will aid physicians on how to use Provenge and Zytiga. Data from sequencing trial should readout 1H:13."

Deutsche Bank maintains a Buy rating and $18 price target on shares of Dendreon. With the stock last trading around $6.27 Monday, the firm's price target represents potential upside of nearly 200 percent.

Track all the market-moving calls on Dendreon shares with our Analyst Ratings page.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
• Powell Industries (POWL) PT Lowered to $235 at Cantor Fitzgerald
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating