Whats wrong with Dendreon

Of course he has not. He is on a multi year misinformation campaign.

You are delusional. Just look at the latest earnings report. Company says earnings won't grow in 2013,net sales of Provenge decreased by 8% in Q2, corporate revenue fell 13% in first half of 2013, stock drops 61 cents in after market trading, Provenge revenue slipped to $73 million. These are facts, not misinformation.
 






You are delusional. Just look at the latest earnings report. Company says earnings won't grow in 2013,net sales of Provenge decreased by 8% in Q2, corporate revenue fell 13% in first half of 2013, stock drops 61 cents in after market trading, Provenge revenue slipped to $73 million. These are facts, not misinformation.

Exactly right. The huge amount of debt due January 2015 is fact too.

The company is down to about 200 million in cash. That money is used to fund operations.

The problem is that they somehow have to come up with 620 million in 15 months to pay the bondholders.

There are options but none of them seem very possible.

1.Refinance like many other companies do when debt is coming due.

The problem here is that Dendreon's financial state is very perilous. The best way for the creditors to get their money back is to NOT refinance. If Dendreon does not have the cash to pay at maturity they would either have to go bankrupt or sell the company. In either of these 2 scenarios it would seem that the bondholders would get all of the 620M back. They are in first position.

2. Issue more shares in a stock offering (dilution). Companies do this all the time to raise cash for operating expenses. The problem here is that this is not about raising cash for operating expenses. It is about raising 620 million to pay the bondholders. How can the company do enough dilution to raise 620 million when the value of all 150 million outstanding shares is much less than 620 million?

It seems like the only way out is a sale of the company in less than 15 months. The acquiring company will take over responsibility for the 620 million. The closer it gets to January 2015, the lower the sales price of the company will be.
 







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