Dendreon has its own Effect named after it, now that it told the Street it would miss all its revenue targets in 2011. And not unlike meteorologist Edward Lorenz's Butterflies, its admission has had far reaching ramifications on biotech stocks according to MarketWatch's Val Kennedy.
Kennedy claims Dendreon's effect has been to scare investors in biotech generally and more particularly scare the beejeeus out of investors in biotechs who are in the process of launching new therapies -- including those backing (more like back-tracking) Human Genome Sciences, Intermune, and Savient. Even Vertex's seemingly successful launch of Incivek for hepatitis C has not been immune from the dreaded Dendreon Effect.
"Pretty much every company that had just launched a product or was about to launch a product got crushed," said Leerink analyst Howard Liang. See Fierce Biotech.
Posted by Bruce Lehr Aug 19th 2011.
Comments