I’m a long term bear, but there’s no double-dip on the horizon, just endless slog. Thus, I’m buying here.
As per Dendreon (DNDN), the stock that lost 65% of it’s value yesterday based on lower earnings guidance, I think it was well overdue. It had a $6B market cap based on no current earnings and one drug, Provenge, which was shown to increase the age of prostate cancer victims by 4.1 months. The price tag is a staggering $93k, which supposedly was going to be paid by US taxpayers, as by law Medicare does not take into account a drug’s cost when considering if it will pay for it (which they said they would)!
I think we are broke enough to tell men if they don’t have and want to spend the $93k, you’re just going to have to die earlier. The FDA study shows people living 25 rather than 21 months, which I don’t think is a good buy. I would bet most people would rather leave their family $93k more than live in agony another 4 months, but in our crazy health care market no one pays for anything out-of-pocket, so they feel insulted to actually have to make the decision. If we really just wanted to prioritize life enhancing dollars, we could increase it more than 4 months by simply giving everyone access to aerobics classes and a dietitian, which would cost much less.