Is "The Sky Falling" at Dendreon?

Dendreon’s (DNDN-$7.50) balance sheet shows the strain of what happens when it takes 15 years to bring a novel, first-in-class cancer treatment like Provenge to market: An accumulated deficit of $1.6 billion and paltry working capital of just $74.7 million. Problematic – given forecasts of continued flat sales through mid-2012.

"Come," said Chicken Little,
"We've sad news to bring,
The sky will fall,
Killing all,
And we must tell the King!”

Digging deeper into regulatory filings, however, the 10Q Detective believes Chicken Little running around the company and pointing skyward is premature – the sky “is not falling” at the Seattle-based biotechnology company – at least not yet.

Read more at 24/7 Wall Street: Dendreon - Not Running Out Of Cash

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.