Transcript: Mike Huckman/CNBC on Provenge activist ad in Wash Post

Here's the full transcript off the Provenge/activist ad segment during "Closing Bell." And yes, I like typing up transcripts when Mike Huckman talks about Dendreon. He's been the most consistent and balanced member of the media when it comes to Provenge. By far.

Closing Bell, Monday, July 16, 2007

Melissa Francis: Investors in a volatile biotech stock are taking their case to Capitol Hill to reverse a controversial FDA decision and their fortune. Their effort doesn't seem to have made much of a difference in the shares of Dendreon today. Take a look at that. They closed the day unchanged. CNBC's pharmaceuticals reporter Mike Huckman joins us now with the latest episode in this soap opera. Mike?

Mike Huckman: That's right, Melissa, a soap opera it is. In this post-Vioxx era, it has become pretty commonplace over the last few years for consumer advocates to launch campaigns to get drugs taken OFF the market, but this is case where a different category of activists is pushing to get a drug put ON the market. (close-up of ad, "DYSFUNCTION AT THE FDA") A group of about 150 investors, patients and their advocates ponied up 24 grand to buy this no-frills, half-page ad in yesterday's Washington Post. It recaps the results of the clinical trials for Dendreon's controversial prostate cancer drug, Provenge, the favorable FDA advisory committee recommendation and subsequent negative decision by the FDA. And it's urging Congress to demand the agency to reconsider. Dendreon investor Arnie Mass spearheaded the fundraising campaign for the ad because he says, time isn't just money here; it's lives.

Arnie Mass: The mistake by waiting is about 30,000 deaths a year of patients who have prostate cancer. These patients can LIVE. We already have evidence of patients living (clears throat) beyond six years that ordinarily would die in 19 or 20 months, so to wait three years is another 90,000 patients that are gonna die.

Mike Huckman: Mr. Mass is referring to the fact that Dendreon says the FDA wants more data about whether Provenge, indeed, extends patients' lives. Preliminary results won't be available, though, until at the earliest, the middle of next year, and complete results are not expected for another two to three years. A Dendreon spokesperson said the company had nothing to do with this ad and that nobody at the company saw it until it ran in the Washington Post yesterday. Last week, Melissa, Dendreon did disclose that the SEC is now doing an informal inquiry into the Provenge clinical trials. Back to you.

Melissa Francis: Wow, what a story. OK, Mike Huckman, thanks so much.

Disclaimer: Pupule Paul is long DNDN.

Has Northwest Bio bottomed out?

Google Finance still has no financial data on it.

Yahoo Finance has some. No chart, though.

No matter if you are a bull or bear, credit is due to Northwest Biotherapeutics. This tiny company, which began the week with a $29 million market cap, is more than a blip on the radar now.

With limited approval in Switzerland to make its immunotherapy vaccine available to brain cancer patients, NWBO.OB is on the map. After taking a major bump down after running up 294% to $7.33, NWBO now sits at $4.20 with a pullback of 42% from the high.

Monday's humongous run was tempered by selloffs on Tuesday and today. Mind you, volume went from 3.9 million shares on Monday to 2.9 mil on Tuesday. Today? A mere 1.2 million shares traded — still a significant number considering the float is a measly 4.17 million. The current PPS is more than double what it was after Friday's close ($2.10).

The decrease in volume may indicate that the selloff is nearly done, and perhaps NWBO has reached a nice, new bottom. The question now that the daytraders are filtering out, is how much is the Swiss deal going to be worth?

There no numbers to work with, but Wolfeman at Investor Village has put together a reasonable list of facts that breaks down the information as well as any.


Still, all the investing and trading are based on the news and speculation. Of course, there's no other headline that grabs attention like "First Cancer Vaccine available."

For biotech investors with an eye on the future — and Northwest Bio's vaccine will be marketed in this quarter — this is definitely a situation worth monitoring. Enter at your own risk.

Disclaimer: Pupule Paul has no position in NWBO.OB.

From the minds and hearts of DNDN's retail investors

The Dendreon forum at Investor Village is a haven for true believers in the Co's pioneering late-stage prostate cancer immunotherapy treament, Provenge.

At least, they hope it will be a pioneering treatment. I won't go into the many levels and chapters of the war between all parties involved. Between lawsuits, the FDA, hedge funds, corrupt doctors, insider information and victimized shareholders, all the info could fill a fat book and then some.

For now, I'll lead you to a highly pertinent post by one of the forum's regulars. In his post, These are the Questions the SEC, the DOJ (FBI), and HHS OIG Should Be Asking..., warlord_2010 leaves no stone unturned.


It's unfortunate that most folks, including myself, have a soft spot in our hearts for the underdog. Since Dendreon went into this uphill battle against many murderous opponents hiding in the wings — the ones who orchestrated the defeat of Provenge — it's been a one-sided, bloody fight. If this were held in a boxing ring, the referee would have declared this a TKO long ago.

Read warlord_2010's list and consider what role the FDA currently plays in saving human life, or whether the FDA has become de-evolved into something it was never meant to be.

Disclaimer: Pupule Paul is long DNDN.

Not for the squeamish: Dendreon

There's a reason why I'm writing about a C grade stock. Many reasons.

Dendreon (DNDN $7.79)
Chart
Grade: C

The skinny: I don't like putting a stock rated below 'B' on this list, but that doesn't mean absolute rules are best. Dendreon was a D company in my book for several weeks despite my optimism about the potential of Provenge. Even with the shenanigans of anti-DNDN forces at the FDA and elsewhere, the risk-reward has improved for this company and its immunotherapy vaccine for late-stage prostate cancer. I'd rather wait until the PPS dives below $6.50 again, but this is not a bad entry point, either. Still, it could be two years (or more) before a real, sustained move enters the territory. Short interest is so compact and large (49%) that any good news will cause tremors.

X factor: For all the corruption and arrogance of its foes, much of Dendreon's shot at survival will depend on its ability to find a ROW partner, one that won't take a cut of US profits. Provenge could become worth $1 billion per year, or it could be literally shelved, depending on management's ability to emerge out of a hostile environment. The jury is out on whether CEO Mitchell Gold can hit that finish line.

Summary: Traders are riding the stock up and down, and without ROW and/or partnership news, or completion of Dendreon's 9902B (Phase 3) trial enrollment, this is not a fundamentally sound issue to buy. However, for those who believe in the science and potentially groundbreaking immunotherapy, this is a stock worth holding and accumulating.

Extra point: The Dendreon forum at Investor Village has been chastized by some in the media as cultish. These same media — not all of them — are showing more focus on retail investors than their actual job. So far, only Mike Huckman of CNBC has had the fortitude and integrity to ask tough questions about conflict-of-issue concerns (re: Dr. Howard Scher) regarding Provenge opponents. Most of the remaining media has been gutless, to be blunt.

Disclaimer: Pupule Paul is long DNDN.