Dendreon Sell-Off Presents Discounted Buying Opportunity in a $1B Company

After immense pre-market trading, Dendreon (NASDAQ:DNDN) is down 22% to $4.85 on earnings and news that it will cut 600 jobs and close a New Jersey manufacturing facility, hoping to reduce costs by $150 million. Dendreon posted a $96 million loss in the second quarter, or $.65 per share, worse than average analyst estimates of $.60. The company’s losses stem mostly from poor sales of the prostate drug Provenge, its only marketed product. The product disappointed analysts and investors since launch with a high cost to consumers and long production time. Although losses have improved since Q2 of 2011, (more…)