This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Dendreon's $230M Haul Says It All

The roughly $230 million raised by Dendreon (DNDN) Thursday night was the second largest follow-on stock offering by a biotech company in 2009 -- a year in which money raised by the sector overall is down significantly.

That's a pretty good indication of strong demand from institutional investors for a piece of Dendreon and its prostate cancer vaccine Provenge.

Only Vertex Pharmaceuticals (VRTX - Get Report) was able to price a larger stock offering this year, raising $320 million in February. After that sits Dendreon, followed by Cadence Pharmaceuticals (CADX) ($86 million), Seattle Genetics (SGEN - Get Report) ($56 million), Allos Therapeutics (ALTH) ($49 million) and Geron (GERN - Get Report) ($46 million), according to Burrill & Co., a San Francisco-based life sciences merchant bank.

No one should be surprised that Dendreon chose to sell company stock to raise money. After last week's Provenge data presentation, CEO Mitch Gold was upfront about the company's plans to raise money in two ways -- both through a stock sale and by partnering Provenge's ex-U.S. commercial rights.

Gold was more circumspect about the timing of a stock sale, but generally speaking, biotech companies try to raise money when they can -- when the demand for the stock is high -- and not when the money is desperately needed.

In this case, Dendreon was able to sell 10.7 million shares with a 1.27 million-share over-allotment in an overnight deal handled by Deutsche Bank Securities. The company hasn't yet announced pricing, but the deal reportedly went off at $19.20 a share. That's at the high end of the range in which the stock was being offered Thursday night and a minuscule 3% discount to Dendreon's closing price of $19.76.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs