The Centers for Medicare & Medicaid Services announced today that Dendreon's prostate cancer treatment Provenge should be covered by the U.S. government backed health programs.
From the Decision Summary:
The Centers for Medicare and Medicaid Services (CMS) proposes that the evidence is adequate to conclude that the use of autologous cellular immunotherapy treatment - sipuleucel-T; PROVENGE® improves health outcomes for Medicare beneficiaries with asymptomatic or minimally symptomatic metastatic castrate-resistant (hormone refractory) prostate cancer, and thus is reasonable and necessary for that indication under 1862(a)(1)(A) of the Social Security Act (the Act).
We are requesting public comments on this proposed determination pursuant to section 1862 (l) of the Act. After considering the public comments, we will make a final determination and issue a final decision memorandum.
The decision gives Dendreon a potential blockbuster treatment with Provenge. According to industry analysts surveyed by Bloomberg the Medicare coverage could drive Provenge sales to $2.3 billion in 2014.
Dendreon's Provenge received FDA approval on April 29, 2010. Following FDA approval DNDN stock price soared to record highs. In subsequent months the stock price has retreated as Dendreon awaited governmental approval of Provenge and it's $93,000 price tag.
DNDN shares closed the Wednesday after hours trading session at $36.48 Up 0.94 (2.64%).
DNDN stock price has traded between a 52 week low of $25.78 and a 52 week high of $57.67 a share.
Dendreon Provenge stock price
