Dendreon soars on news of Congressional investigation
Dendreon Corp. (Nasdaq: DNDN) shares began soaring shortly before 1 p.m. after CNBC reported that three members of Congress want a probe into the U.S. Food and Drug Administration’s rejection of Dendreon’s prostate cancer drug Provenge. A congressional investigation will try to find out whether a conflict of interest influenced the FDA’s handling of Provenge.
Three representatives — Rep. Dan Burton, R-Ind., Rep. Mike Michaud, R-Maine, and Rep. Tim Ryan, D-Ohio — are requesting an investigation of ethical violations and conflicts of interest by two members of the FDA. The FDA said it needed more clinical data from Dendreon regarding Provenge in May.
The spike in Dendreon’s stock price is temporary, said Reni Benjamin, a senior biotechnology analyst with Rodman & Renshaw.
“This is a lot of investor speculation. This is all excitement,” Benjamin said.
He said he isn’t aware of any time an FDA decision was reversed.
In afternoon trading, DNDN shares are up 21.46%, or $1.21, at $6.85. Over the last 52 weeks, shares have ranged from $3.57 to $25.25.
