Investors in Dendreon will take the hit in their stride. As BNET has noted before, this company has essentially become an act of faith for those who believe that Provenge will become a blockbuster that could sell $1.2 billion to $2.5 billion in revenues.
CEO Mitchell Gold didn't wait for the new stock to sell some of his shares, however. In April he exercised 542,928 options priced at $4.41 - $9.25 per share and sold 600,000 shares and generating $14.9 million before costs. Since then, he's disposed of several other small tranches -- three lots in October alone -- and netted another $223,122 at prices between $22.99 and $29.51. Some of the sales appear to be scheduled.
He might as well. It will be a disaster for Dendreon if the FDA rejects Provenge. As this SeekingAlpha blogger notes:
If Provenge is once again pushed aside by the FDA, then I would expect to see a public outcry larger than the one that was ignited in 2007 that saw patients and investors alike join forces to lobby the agency for answers.
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- Dendreon Still Faces Hurdles for Provenge Despite Positive Phase 3 Data
- Dendreon: Pro-Provenge Activists Heap Abuse on Cancer Drug's Critics
- Vultures Circle Dendreon Even Though Jury Is Still Out on Provenge
- FDA to Biotech: Don't Blame Us For Your Cruddy Data