Johnson & Johnson (JNJ), Dendreon Corporation (DNDN): A Magical Drug that Could Change Lives

Despite the  increasing competition, I believe that Provenge will report blockbuster growth. According to doctors, the dosage frequency of Provenge is expected to increase by 10-20% in 2013. The coming year actually has a lot more growth potential. The company is expanding in Europe and is expecting approval from European authorities sometime in 2013. According to a news report, Dendreon Corporation (NASDAQ:DNDN) operates with only 10% of its production capacity. This means that Dendreon wouldn’t have to expand its manufacturing facilities to ramp up production, and growth will mainly be demand-driven.

Wrap up

Dendreon Corporation (NASDAQ:DNDN) was approved by the FDA in 2010, and it’s highly unlikely that European authorities would say anything different. Expanding in Europe is a big positive for the company, and analysts have improved its EPS estimate to $0.42, up from a loss of $0.36. I think Dendreon is available at a deep discount, and deserves an Outperform rating.

The article A Magical Drug that Could Change Lives originally appeared on Fool.com and is written by Piyush Arora.

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