Dendreon's (NASDAQ:DNDN) PROVENGE Should Receive Positive Rating

With manufacturing capacity issues expected to be resolved soon, and PROVENGE looking positive, Needham sees Dendreon (NASDAQ:DNDN) as a stock of interest in 2011.

Needham said, "We view DNDN as a stock of added interest in 2011. We believe the manufacturing-capacity constraints will be well addressed, and by the end of 2011, we expect all three manufacturing facilities will be on-line with ~10x the current capacity. We are encouraged to see PROVENGE demand remains strong despite limited marketing efforts to date, and physician-prescribing behavior does not seem to be affected by reimbursement concerns. Given the positive MEDCAC panel, we anticipate a positive memo from MEDCAC in March 2011 and a positive ruling in June 2011 regarding payment for on-label PROVENGE use under the National Coverage Analysis. We believe the significant clinical benefits of PROVENGE with 4.1 months improvement in overall survival will likely weigh heavily on the final decision."

Needham & Company reiterates a "Buy" rating on Dendreon, which closed Wednesday at $35.21, down $0.28, or 0.79 percent. They have a price target of $62 on Dendreon.