Dendreon?s on a Huge Run Following Preannouncement

[Stocks-to-Watch]

Dendreon (DNDN), which makes a treatment for prostate cancer, has been rising sharply in the past three days after preannouncing better than expected fourth quarter revenue . The company also announced that sales of its prostate cancer therapy Provenge have been growing.

In the past three days the stock is up more than 80%, including a 12% bump this afternoon.

That said, not everyone is convinced about the company’s potential.

“Despite encouraging growth in the fourth quarter and a potential upswing in early 2012, we continue to be concerned with Provenge’s eventual potential and profitability, and believe the surge in the stock today based on the fourth-quarter preannouncement is unjustified,” wrote William Blair analyst Y. Katherine Xu.



Original Article Source by Barrons.com