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Last update: 5/16/2012 5:15:49 PM
By Peter Loftus
Of DOW JONES NEWSWIRES
Dendreon Corp. (DNDN) said the U.S. Securities and Exchange Commission has begun a formal investigation, which may be related to shareholder lawsuits alleging the company misled investors about prostate-cancer drug Provenge.
Dendreon said in its quarterly report filed with the SEC last week the lawsuits--which have been consolidated in federal court in Washington state--generally allege that Dendreon and certain current and former officers made materially false or misleading statements about the market launch of Provenge.
The lawsuits allege Dendreon and the current and former officers violated securities laws, or that the current and former officers breached their fiduciary duties. Some of the lawsuits also include allegations of misappropriation of company information and insider trading, Dendreon said in its regulatory filing.
Dendreon said in its regulatory filing it believes the claims in the lawsuits lack merit and it intends to defend against them.
The U.S. Food and Drug Administration approved Provenge, which is designed to harness the immune system to fight prostate cancer, in April 2010.
The company generally spoke positively about the market launch for Provenge during the first half of 2011, but in August 2011 Dendreon surprised investors when it revealed that physician adoption of the drug was slowing due to challenges related to reimbursement. Dendreon cut its revenue forecast for Provenge, contributing to a one-day stock-price plunge of more than 65%.
The company has since named a new chief executive and says it's making progress in marketing Provenge.
Dendreon shares have risen 13.4% year-to-date, closing Wednesday at $8.62.
A spokeswoman for Dendreon couldn't immediately be reached.
An SEC spokeswoman declined comment, citing commission policy.
TheStreet.com columnist Adam Feuerstein mentioned the SEC investigation on Twitter Wednesday.
-Peter Loftus, Dow Jones Newswires; +1-215-982-5581; peter.loftus@dowjones.com
(END) Dow Jones Newswires
May 16, 2012 17:15 ET (21:15 GMT)
Last update: 5/16/2012 5:15:49 PM
By Peter Loftus
Of DOW JONES NEWSWIRES
Dendreon Corp. (DNDN) said the U.S. Securities and Exchange Commission has begun a formal investigation, which may be related to shareholder lawsuits alleging the company misled investors about prostate-cancer drug Provenge.
Dendreon said in its quarterly report filed with the SEC last week the lawsuits--which have been consolidated in federal court in Washington state--generally allege that Dendreon and certain current and former officers made materially false or misleading statements about the market launch of Provenge.
The lawsuits allege Dendreon and the current and former officers violated securities laws, or that the current and former officers breached their fiduciary duties. Some of the lawsuits also include allegations of misappropriation of company information and insider trading, Dendreon said in its regulatory filing.
Dendreon said in its regulatory filing it believes the claims in the lawsuits lack merit and it intends to defend against them.
The U.S. Food and Drug Administration approved Provenge, which is designed to harness the immune system to fight prostate cancer, in April 2010.
The company generally spoke positively about the market launch for Provenge during the first half of 2011, but in August 2011 Dendreon surprised investors when it revealed that physician adoption of the drug was slowing due to challenges related to reimbursement. Dendreon cut its revenue forecast for Provenge, contributing to a one-day stock-price plunge of more than 65%.
The company has since named a new chief executive and says it's making progress in marketing Provenge.
Dendreon shares have risen 13.4% year-to-date, closing Wednesday at $8.62.
A spokeswoman for Dendreon couldn't immediately be reached.
An SEC spokeswoman declined comment, citing commission policy.
TheStreet.com columnist Adam Feuerstein mentioned the SEC investigation on Twitter Wednesday.
-Peter Loftus, Dow Jones Newswires; +1-215-982-5581; peter.loftus@dowjones.com
(END) Dow Jones Newswires
May 16, 2012 17:15 ET (21:15 GMT)