Shares of Dendreon sank 5 percent in pre-market trading after investors got word of a note from Elliot Favus of Favus Institutional Research claiming that his firm had been in contact with physicians who had been contacted to participate in an advisory review for Provenge, one of the most eagerly watched therapies now in front of the FDA. TheStreet's Adam Feuerstein first reported on the rumor, which had already panicked some investors ready to run at even the slightest prospect of trouble for what is widely expected to be a blockbuster medication.
But, it turns out, the Favus report was quickly discounted. A Dendreon spokesperson say that it's news to the company; they haven't been told to expect a new advisory panel review of Provenge. David Miller of Biotech Stock Research in Seattle issued a note saying he doesn't think the rumor is true. But, he added, if the stock stayed down, it could be a good time to buy. And the Twitterverse was alive with pungent one-liners about the Favus note and its consequences.
It didn't take the market long to decide to discount the report, either. Dendreon's share price was back up in positive territory soon after the market opened. The FDA has a May 1 PDUFA deadline established for Provenge.