Updated with new stock price.
SEATTLE ( TheStreet) -- Dendreon (DNDN) shocked investors Wednesday by announcing that Provenge sales are growing much slower than expected because doctors are concerned about getting reimbursed for using the expensive prostate cancer drug.
Some thoughts, observations and questions for Thursday morning after watching Dendreon shares plunge 62% to $13.65 in Wednesday's after-market trading session. On Thursday morning, Dendreon is trading around $14:
"WTF just happened?" Dendreon blames the "cost density" of Provenge for the setback, which is jargon for doctors unwilling (or unable) to shell out $93,000 for a treatment course of Provenge before receiving reimbursement from their patients' insurance companies.Provenge is certainly not the only high-priced cancer drug, but when prescribing Provenge doctors are on the hook for a lot of money ($93,000) in a relatively short period of time -- let's say one month.
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