Shares of Dendreon Corporation (NASDAQ: DNDN), a biotechnology company engaged in the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients, are seeing a huge rally in trading today following a rating upgrade from Sanford C. Bernstein.
Analysts at Sanford C. Bernstein upgraded DNDN shares from a Market Perform to an Outperform rating. Sanford C. Bernstein has a price target of $10 on DNDN shares.
The rating upgrade comes after Dendreon earlier this week announced its preliminary fourth-quarter revenues. The company expects net product revenue for the fourth quarter ended December 31, 2012 to come in at approximately $85.5 million. On a pro-forma basis, revenue for the quarter is expected to be approximately $81.6 million, representing an increase of 5% over the same period in the previous year.
John H. Johnson, President, Chairman and CEO of Dendreon, said that the company has focused its commercial efforts on growing its community accounts, where it sees the greatest long-term revenue opportunity. Johnson noted that having achieved highest quarter ever for community sales, the company believes that its community strategy is working.
Johnson also said that DNDN’s key account management teams, combined with improved sales execution and direct-to-patient initiatives, are contributing to increased use of PROVENGE in community oncology and urology settings, a trend the company saw beginning in the third quarter.
Dendreon will release its full fourth-quarter results on February 27, 2013.
DNDN shares rose to an intra-day high of $6.02 in early trading today. At last check, the stock was trading 16.67% higher at $5.95 on above average volume of 5.86 million.
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