Will the Dendreon Hate Continue Now That Pricey Provenge Is Closer to Medicare-Approved?
Anyone remember Dendreon? Good news for the company, bad news for those who are still trying to take them down.
Dendreon Corp. (DNDN)’s prostate cancer drug Provenge should be covered by the U.S. government for use in older men, regulators said.
The $93,000 treatment regimen is “reasonable and necessary” for men with advanced, castrate-resistant prostate tumors who have minimal or no symptoms of the disease, the Centers for Medicare & Medicaid Services said today. The proposal matches the approved prescribing information and suggests that doctors may even expand use in some cases, said Michael Yee, an analyst at RBC Capital Markets in San Francisco.
The decision is critical for Seattle-based Dendreon as three-quarters of the men approved for Provenge are eligible for Medicare because they are at least 65 years old. Investors’ skepticism that Dendreon wouldn’t win reimbursement or be able to satisfy demand for the drug has pushed the shares below the traded price before Provenge was cleared for sale on April 29.
“This is a positive decision memo that clearly supports reimbursement for Provenge,” Yee said in an e-mail. It also leaves “the door open to the local carriers to even consider on a case-by-case basis, other possible off-label non-covered uses as well.”
Dendreon rose 61 cents, or 1.7 percent, to $36.15 at 5:17 p.m. New York time in extended trading on the Nasdaq Stock Market. The shares earlier closed down 34 cents, or 1 percent, to $35.54. Dendreon has dropped 36 percent from a peak of $55.43 on May 3.
Looks like someone, for whatever reason, still has it out for Dendreon. Can't see how this announcement will help that, the hating goes way back.
Recommended supplemental reading: No 'Shareholder Uprising' at Dendreon, Saul Kerpelman via Seeking Alpha