Tuesday, March 2, 2010
The Dendreon bear raid today
Dendreon, was supposedly going to brought in front of an FDA advisory panel. The shorts sold stock under 30 in the pre-market, trying to drum up a scare.
twittered about it: (Jon always gives breaking news--no agenda there)
"The Favus issue is pushing $DNDN down about $2.00 in the pre on our Depth Charge this am -www.trademonster.com/pt"
Adam Feurstein, then had this piece out on DNDN, after he first tried to incite a panic on Dendreon.
Report Claims Dendreon Facing FDA Panel: BioBuzz
SEATTLE (TheStreet) -- Dendreon's prostate cancer drug Provenge is likely to be brought in front of a U.S. Food and Drug Administration advisory panel, according to an independent and unconfirmed research report released Tuesday.
"We have been in contact with physicians who have been invited by the FDA to participate in an upcoming FDA Advisory Committee Panel Meeting to discuss Provenge," said Elliot Favus of Favus Institutional Research, in a note sent to institutional investor clients Tuesday morning.
The report sent Dendreon shares falling sharply in Tuesday's pre-market trading, but the stock has since recovered and is down 81 cents, or 2%, to $31.70. Investors are not expecting FDA to hold another advisory panel meeting on Provenge. The FDA will issue an approval decision on Provenge on or before May 1.
Dendreon says FDA has not given the company any indication that a Provenge panel will be scheduled, according to a Dow Jones report. The FDA has not announced plans for an advisory panel meeting.
"I think he's wrong, but even if he is right the panel voted positively last time. The data are stronger this time so I would expect another positive vote and the FDA to approve the drug so that prostate cancer patients can finally have access to this lifesaving drug," said David Miller of Biotech Stock Research, an independent biotech investment newsletter and a long-time follower of Dendreon.
Miller added that Dendreon's management, only last week, said FDA had not been in contact with the company about scheduling an advisory panel for Provenge.
Deutsche Bank biotech analyst Mark Schoenebaum also defended Dendreon this morning. "In my opinion, if a panel is called by FDA, Dendreon's stock could be down 10-20% as most didn't expect a panel. However, given the good [Provenge] survival data, my sense is that it will pass any such panel, as it passed the 2007 panel with even weaker data. So even with a panel, I think approval is likely by year-end 2010."
In his report, which he calls a "reason to sell" Dendreon, Favus writes, "We believe that the Street is not expecting an FDA Panel to discuss Provenge and that the announcement of an FDA Panel to discuss Provenge will put significant downward pressure on DNDN shares.
Jim Cramer then pretended that Favus was speaking holy writ as he said this:
3/2/2010 9:59 AM EST
Dendreon is a cult stock, the most fierce cult i have ever seen. I predict that this outfit Adam writes about that said DNDN is a sell will get death threats... Body guard required. I AM NOT KIDDING
A few minutes later, we find out that the FDA says that this isn't true. The stock rallies, as those who knew the story was a plant, aggressively eat their young, buying back those shares they naked shorted, and those that they need to cover.
Here was that news:
*DENDREON'S PROVENGE IS SCHEDULED FOR FDA ACTION BY MAY 1
*FDA SPOKESWOMAN SHELLY BURGESS SAYS NO PLANS FOR ADVISORY PANEL
*DENDREON'S PROVENGE WON'T FACE U.S. FDA PANEL, SPOKESWOMAN SAYS
Thirty minutes later, after this news hits, at 10:36 Mike Huckmmn breathlessly goes on CNBC and says that the FDA said that no panel meeting was going to take place.
Five minutes after Huckman, Jim Cramer backtracks:
3/2/2010 10:41 AM EST
So much for the bear. Now the shorts are caught and can't cover... House of pain...
And he then puts in the FDA comments!
But you can get revenge on all the liars on Wall Street!! Alzheimer drug company, Medivation, just broke out to a new high today. I mentioned it Sunday. And like clockwork, the stock moved five points!
Sometime, in the next couple of months, they'll give their Alzheimer data, and in my opinion, the stock should then be trading at least double from where it is now.
Take the stock, or sell some puts on this name and collect the premium!
Posted by Palmoni at 6:50 PM