dndn is not prr, page-11

So what has Dendreon actually put into the marketplace:

FROM DENDREON:
"As of June 30, 2011, Dendreon had $673.9 million in cash, cash equivalents, and short-term and long-term investments compared to $277.3 million as of December 31, 2010.

"We believe the market potential for PROVENGE is substantial, and the primary issue affecting the dynamics of our launch is the reimbursement knowledge around PROVENGE. We anticipate the positive National Coverage Determination (NCD) and Q-code will have a significant impact on increased physician adoption. However, we believe this will take time, and for the remainder of 2011, the launch trajectory will reflect a more gradual adoption of PROVENGE as physicians gain confidence in this positive reimbursement landscape," said Mitchell H. Gold, MD, president and chief executive officer. "With the number of infusion sites increasing substantially, our principal objective continues to be ensuring all eligible patients have access to PROVENGE."

Dendreon expects that adoption of the new reimbursement paradigm will take time. Accordingly, Dendreon is withdrawing its previous guidance of $350-400 million in revenue for 2011 and currently expects modest quarter over quarter revenue growth for the remainder of this year.

The Company expects to reduce expenses, including workforce reductions, to align with its near-term manufacturing requirements.

"Our accomplishments this year are foundational as we introduce an entirely new treatment paradigm for patients with advanced prostate cancer," continued Dr. Gold. "These position us well to realize the significant market potential of PROVENGE, and we have identified a solid and clear path to ensuring that the many men who can benefit from it have access to our life-extending drug."
END OF QUOTE

There is nothing in there that calls into question the clinical elements of the drug. These are unchanged.

What has happened is that they have announced that they overestimated the market penetration and the amount of production they needed to meet that demand. They have down-ramped their production accordingly. That's sensible business strategy to me.

They have not announced what their sales will be - they don't have a crystal ball.

They still have the first FDA approval for commercial immunotherapy for cancer.

If their share price fell 60% in aftermarket trading, in my view that is an over-reaction and they are oversold to hell (non-expletively speaking) - if so expect there to be a firming of their price when the the market opens tonight. If I'm wrong the drop will be cemented in. If there is a significant bounce in DNDN in trading, expect a similar bounce in PRR tomorrow.

Pretty tense stuff eh?