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Already noted as a 'Stock to Watch' this week, keep an eye on Dendreon Corp. (DNDN) over the short term as the company issued an after-hours press release on Wednesday announcing a 4:30 PM Thursday conference call where management will "provide a structural and business update on the company."

It's the "structural update" that will be worth noting.

Accompanied with the bad press received by Dendreon since rescinding the year-end sales guidance for Provenge has been speculation that the current troubles might be something that the company will not recover from. It's also been debated whether or not Dendreon's 'Golden Age' might ever fully materialize.

If Thursday's update contains - as rumored around the Internet - significant layoffs and/or cost-cutting measures, then there could be some additional downward pressure and volatility applied to the DNDN stock. Because this stock has a history of overzelous trading patterns, another beating could be in store.

The bad press will most likely continue, as Johnson & Johnson's new prostate cancer drug Zytiga steals headlines.

That said, negative press is nothing new to Dendreon and the company has recovered from it before, but it does look like an uphill battle might be ensuing since the company needs to embark on an advertising campaign for Provenge, a product that should essentially sell itself. At the same time, the pundits will say, Dendreon's sales force might not have the manpower or know-how to combat the forces employed by J&J with Zytiga.

This is a company was at the top of the world after receiving the first approval for a cancer immunotherapeutic treatment in the United States early last year, and there's good reason to believe that a recovery will be in effect.

However, the short term might be filled with more volatility since company restructurings are generally not received well by the market in cases of cost-cutting after missing sales guidance. It might be a rough ride until numbers start rolling in that indicate Provenge sales are picking up at a respectable pace, but it's worth keeping in mind that Provenge is no slouch of a product and Dendreon still has more in the pipeline.

Will the company reconsider its original opinions regarding signing a big-named partner to market Provenge and "educate" Doctors or reimbursement procedures?

Possibly, but it's more likely that the company is going to look to pull itself out of this hole on its own.

The details of that scenario will likely be know during the Thursday conference call.

Stay tuned.

Disclosure: No position.

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