Is Dendreon Done?

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Biotech investing can be a cruel mistress, as best-in-class treatment status and momentum behind a stock can suddenly evaporate. As if Dendreon (NAS: DNDN) investors needed anything else to worry about after a botched launch for prostate-cancer treatment Provenge hammered shares, a new and powerful competitor is emerging. Johnson & Johnson's (NYS: JNJ) Zytiga is already on the market, and a recent trial to make it a first-line treatment and compete head-to-head with Provenge was unblinded -- a good sign that it is working.

Is Dendreon doomed to be crushed under the monolithic weight of J&J or additional competitors lining up on the horizon? Or does the scrappy biotech still have an fighting chance? Watch the video and find out.

Healthcare investors are always looking for the next big breakthrough. But instead of hoping for a buyout or that Provenge starts gaining traction, why not follow Motley Fool co-founder David Gardner's lead? He recently identified a small-cap healthcare company that is poised for monster returns. To uncover this top pick today, take a look at our special free report, "Discover the Next Rule-Breaking Multibagger." Don't miss out on this limited-time offer and your opportunity to discover this game-changing company before the market does. Click here to access your report -- it's totally free.

At the time this article was published David Williamsonowns shares of Johnson & Johnson and Dendreon, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio.The Motley Fool owns shares of Johnson & Johnson, Exelixis, and Dendreon.Motley Fool newsletter serviceshave recommended buying shares of Johnson & Johnson and Exelixis; and creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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