Boston, MA 08/13/2014 (wallstreetpr) – Dendreon Corporation (NASDAQ:DNDN), which makes Provenge, the prostate-cancer drug, slipped in the market after it hinted towards the notion that the company was keeping into consideration a few steps which would leave all its shares worthless. In the regulatory filing, the Seattle-based company hinted that there remained significant risk that the company may not be able to repay or refinance the bondholders who possess $620 million in convertible notes. This amount is due to be paid in January 2016.
Dendreon’s Statement
Dendreon Corporation (NASDAQ:DNDN), in its statement said that it was measuring all the options which would leave its stockholders with no or very little financial ownership. After the statement, shares of company slipped 72 cents or 34%, the biggest percentage-point dip since 2011.
The stock has now witnessed disappearing value in the backdrop of slow sales of its drug, Provenge.
What analysts feel?
The William Blair & Co. Analyst, Y Katherine Xu in this context said that this action of Dendreon Corporation (NASDAQ:DNDN) would lead to complete extinction of common shareholder. He explained that in order to repay the debt under any situation, one considers the prospects of sales. However, he added, that as of now and at present, the company has no confidence in Provenge, which is actually the big issue.
Dendreon’s Net Loss
The drug, Provenge, includes power to exclude WBCs (white blood cells) from the patient’s body. This drug has other competitions in the market such as Xtandi and Zytiga.
Citing manufacturing, clinical trials and research expenses, Dendreon Corporation (NASDAQ:DNDN) reported that the net loss of company was $51.7 million for first six months of the present year, in comparison to the net loss of $140.8 million during the same time period in the previous year.
The debt of company can be converted into shares at $51.24, which means that it is hardly possible for the bondholders to make use of their right, as explained by the company in its regulatory filing.
