Color on Dendreon’s Offering (DNDN)

Posted in Options, pre-market 
December 11th, 2009

Dendreon Corporation (NASDAQ: DNDN) is trading lower after pricing its 15 million shares secondary offering last night.  The price went off at a deeper discount than the trading activity had hinted at because the price was $24.75 versus a $25.65 close.  The stock had been around $26.50 to $27.00 before the offering was announced this week.  At 8:03 AM EST we have shares down only 1.05% at $25.38 on over 80,000 shares.  Average volume is 3 million shares, but you can bet for sure that this average will be hit early today.  We’d also look for the options volume to be active.

J. P. Morgan and Deutsche Bank were the joint book-runners; co-managers are Citigroup, Morgan Stanley, Lazard Capital Markets, Leerink Swann, and Needham & Company.  Dendreon anticipates net proceeds from the offering of approximately $356.0 million or $409.5 million if the 2.25 million share overallotment option is exercised.  All proceeds are for the company and are going into manufacturing facilities, and other activities to further gear up for the PROVENG launch IF/AND when it is finally approved by the FDA.

Jon C. Ogg

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