How to Trade Dendreon Ahead of Earnings, and Other Biotechs to Watch

The biotechnology company Dendreon Corporation (DNDN) reports earnings on Monday, February 27 before the market opens. In the past two months or so, Dendreon shares have approximately doubled due to what appears to be increased confidence in the Provenge commercial opportunity (see chart below). Click to enlarge Provenge is an immunotherapy for prostate cancer recently approved by the FDA; but in August of 2011, Dendreon lost two thirds of its market capitalization (see chart below) when it reported disappointing Provenge sales and removed financial guidance for this product. Click to enlarge In the subsequent quarters after the disappointing report, the