Dendreon Soars After Prostate Cancer Drug Approved

April 29, 2010 Updated: April 29, 2010

Dendreon Corp. announced approval of its new cancer medication Provenge, resulting in a substantial increase in the company’s stock on Thursday, pleasing shareholders, and board members.

The Federal Food and Drug Associaton (FDA) gave the green light to Dendreon (Nasdaq: DNDN) to move forward with the solicitation of a new cancer medication known as Provenge. Dendreon ran a substantial number of tests before submitting their formula for Provenge to the FDA knowing that the association’s approval would make or break the outcome of years of hard work.

"The FDA approval of Provenge is a testament to the courage of the patients and researchers who participated in our studies and is the culmination of nearly 15 years of research and development by our dedicated employees," said Mitchell H. Gold, M.D., Dendreon president, in a statement.

Dendreon’s stock jumped from $42.65 to $50.18 Thursday after the announcement of the FDA approval. Board members at Dendreon state that the company is not just trying to make money off of cancer victims, but is truly dedicated to increasing life expectancy as well as quality of life for patients.

"The approval of Provenge is a significant step toward realizing our mission of transforming the lives of patients with cancer, and it also marks Dendreon's transformation into a commercial enterprise, ready to support the successful launch of the first personalized treatment for cancer." said Gold.

Dendreon’s headquarters is based in Seattle, it describes itself on the company website as “a biotechnology company focused on targeting cancer and transforming lives through the discovery, development, and commercialization of novel therapeutics that may significantly improve cancer treatment options for patients.”

Provenge has become the company's most important product to date. If doctors find Provenge to be effective, there is a chance that Dendreon’s stock will continue to grow.

The drug is designed to help battle prostate cancer, the second most common type of cancer among men after lung cancer. Currently there are at least 2 million reported cases of prostate cancer in the United States alone, with the majority of cases involving men over the age of 65.