BRIDGEWATER, NJ ( TheStreet) -- Dendreon (DNDN) reported Provenge sales of $78 million for the September quarter, down sequentially and short of Street expectations again, yet the stock soared higher at Friday's open because some investors see a light emerging from the end of a long, dark tunnel.
As I mentioned in my preview, the best thing Dendreon had going for it coming into today's third-quarter earnings was ultra-low expectations. Investors were so accustomed to Dendreon blowing itself up four times a year that Friday's no-drama report was a giant upside surprise.
Dendreon shares jumped 24% to $4.75 in early Friday trading. Of course, some perspective is in order. Coming into today, Dendreon shares hadn't traded this cheap since before Provenge's phase III study results were announced three years ago.
Provenge sales of $78 million in the quarter were up 28% year over year but down 2.5% sequentially. Provenge quarterly sales must reach $100 million for Dendreon to be cash flow positive on an operating basis. Provenge sales are actually moving in the wrong direction but 14% quarter-over-quarter growth among community urologists -- the drug's target audience -- suggests a turnaround is possible."The community setting is where we will see most of our