Are Takeover Talk and Provenge Adding Optimism to Dendreon’s Biggest Institutional Shareholders?

Shares of Dendreon (NASDAQ:DNDN) are trading up 29% in the first quarter of 2012. In its most recent quarterly earnings release, the company reported revenue of $202.15 million versus the consensus estimate of $120.8 million. Even further, there has much takeover speculation surrounding swirling around the company’s stock this year. Meanwhile, investors are watching the recent rattle of Johnson & Johnson’s Zytiga as a potential threat to Dendreon’s Provenge. Are these institutional shareholders loading up on more shares of Dendreon this year?

153 institutional firms indicated owning shares of Dendreon Corp. (NASDAQ:DNDN) in both Q3 2011and Q4 2011. These firms reported owning a total of 89.796 million shares on 09/30/2011 and 90.871 million shares on 12/31/2011. The shares closed at $9.00 on 09/30/2011 and $7.60 on 12/31/2011, for an aggregate market value of $808.163 million and $690.621 million, respectively.

Here are the ten largest positions in Dendreon’s stock as of the end of December 31st, 2011.

PRIMECAP MANAGEMENT CO/CA/ held 8,280,160 shares on 09/30/2011 which were worth $74,521,440. On 12/31/2011 the firm held 8,450,660 shares worth $64,225,016. This represented an increase of 170,500 shares or $10,296,424.

VANGUARD GROUP INC held 5,948,224 shares on 09/30/2011 which were worth $53,534,016. On 12/31/2011 the firm held 7,150,222 shares worth $54,341,687. This represented an increase of 1,201,998 shares or $807,671.

CAPITAL WORLD INVESTORS held 6,210,000 shares on 09/30/2011 which were worth $55,890,000. On 12/31/2011 the firm held 6,760,000 shares worth $51,376,000. This represented an increase of 550,000 shares or $4,514,000.

SECTORAL ASSET MANAGEMENT INC held 1,518,000 shares on 09/30/2011 which were worth $13,662,000. On 12/31/2011 the firm held 4,721,874 shares worth $35,886,242. This represented an increase of 3,203,874 shares or $22,224,242.

PRICE T ROWE ASSOCIATES INC /MD/ held 3,407,340 shares on 09/30/2011 which were worth $30,666,060. On 12/31/2011 the firm held 4,663,640 shares worth $35,443,664. This represented an increase of 1,256,300 shares or $4,777,604.

PUTNAM INVESTMENT MANAGEMENT LLC held 3,721,695 shares on 09/30/2011 which were worth $33,495,255. On 12/31/2011 the firm held 4,501,372 shares worth $34,210,427. This represented an increase of 779,677 shares or $715,172.

ORBIMED ADVISORS LLC held 803,000 shares on 09/30/2011 which were worth $7,227,000. On 12/31/2011 the firm held 4,168,800 shares worth $31,682,880. This represented an increase of 3,365,800 shares or $24,455,880.

MILLENNIUM MANAGEMENT LLC held 2,673,625 shares on 09/30/2011 which were worth $24,062,625. On 12/31/2011 the firm held 3,905,951 shares worth $29,685,228. This represented an increase of 1,232,326 shares or $5,622,603.

BLACKROCK INSTITUTIONAL TRUST COMPANY N.A. held 3,052,673 shares on 09/30/2011 which were worth $27,474,057. On 12/31/2011 the firm held 3,431,492 shares worth $26,079,339. This represented an increase of 378,819 shares or $1,394,718.

STATE STREET CORP held 3,048,892 shares on 09/30/2011 which were worth $27,440,028. On 12/31/2011 the firm held 3,417,486 shares worth $25,972,894. This represented an increase of 368,594 shares or $1,467,134.

About the company: Dendreon Corporation discovers and develops immunologically based therapeutic products for the treatment of cancer. The Company combines knowledge in immunology and antigen engineering with proprietary cell separation technologies to develop therapeutic vaccines that induce cell-mediated immunity, the body’s key defense against cancer.

To contact the reporter on this story: Alex Capel at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com