The dog days might be done for Dendreon (DNDN).
Dendreon's share price collapsed last summer when it became apparent that sales numbers were lagging for Provenge - Dendreon's milestone immunotherapeutic treatment for prostate cancer that made history when it was approved by the FDA in May of 2010 - and many all but wrote the company off as new competition was able to gain a foothold in the market while massive restructuring got underway at Dendreon HQ.
The tide may have turned, however, both in terms of Provenge sales numbers and in a trend reversal for the DNDN share price. As noted in this week's 'Weekly Stock Watch', DNDN shares tore through the twelve dollar mark last week on rebounding sales numbers for Provenge.
Revenue of over eighty million dollars was reported for the quarter, marking a full 25% increase over the previous quarter. The full year 2011 revenue came in at nearly $230 million, and although that number is still far from the $350-500 million that had been earlier predicted by the company, it indicates that the questions and concerns of reimbursement that were keeping Doctors and Physicians from prescribing the treatment are now answered.
Volume was through the roof on Friday, at about five times the daily trading average, and the price followed again with another 16% increase to close the day at $12.35. Not bad for a stock that closed 2011 - just days earlier - at less than eight bucks.
It's not as if Dendreon is new to volatility, but the recent past is another demonstration of just how quickly the tide can turn; not only for a company's share price, but also in terms of media coverage. All but dismissed just months ago when the shorts were riding this stock down, the trend has turned and recent headlines are again spotlighting Dendreon's potential as rebound candidate for 2012.
The company is not completely out in the clear just yet.
Earlier concerns of pricing, competition and reimbursement are still valid, but the proof is there that we haven't seen the last of the Dendreon powerhouse just yet. Another few months of revenue growth as significant as we saw to close 2011, and we're potentially talking about a $20-$30 stock again.
Never without excitement, DNDN continues to be a story to follow as the company looks to prove that Q4 was no fluke, and there's more where that came from.
Disclosure: Long DNDN.