After more than a year of disappointments, Dendreon's stock price soared on Friday with a ratings upgrade based on the future outlook of Provenge in 2013.
In a much-needed vote of confidence, shares for Dendreon Corp. soared Friday after an analyst upgraded the stock’s rating. Bernstein analyst Geoffrey Porges upgraded the stock to “outperform.”
The biotech had a tough year in 2012, particularly after Johnson & Johnson’s Zytiga emerged as a strong competitor after the annual American Society of Clinical Oncology conference. Dendreon’s stock traded for under $10 for most of the year, a stark comparison to 2011 when it was trading for over $40.
However, after discussions with urologists Porges believes that more patients will be taking Provenge. According to The Motley Fool, Bernstein noted that Dendreon could be one of the market’s best performers of 2013.
“Dendreon forecast better-than-expected fourth-quarter adjusted revenue earlier this week, saying that Provenge is starting to be used more often in community oncology and urology practices,” the Associated Press reported.
A year ago the stock was trading at $14.35.
The stock jumped by 16% immediately when the markets opened and finished the day at $6.17, up 21% over the previous day’s close.
Urologists expect a 10% to 20% increase in the frequency of Provenge’s use in 2013.
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