Biotechnology company Dendreon (DNDN) is not in good health in 2014. The company has lost around 34% of its market capitalization so far this year and its first-quarter results didn't inspire any confidence either, although they were marginally better as compared to last year. Dendreon's cancer drug, Provenge, turned in weak sales. As a result, despite cutting its losses in half from the year-ago period, Dendreon's shares fell.
But, on a year-over-year basis, management observed an increase in its revenue for the first time in the quarter. In addition, Dendreon says that sales of Provenge have stabilized despite facing stiff competition. As a result, the company expects that the drug's performance should improve in the second quarter.
Solid opportunity ahead
Dendreon has got a solid opportunity ahead of it given the solid growth expected in the market for prostate cancer drugs. According to Decision Resources, this market