Dendreon Corporation (NASDAQ: DNDN) is surging on news that the Centers for Medicare and Medicaid Services will now cover the infusion costs associated with the administration of PROVENGE. Dendreon noted that this new coverage of PROVENGE is now consistent with all other infused biologics.
The costs associated with administering PROVENGE will now be covered and can be billed separately. More importantly, the CMS decision will retroactively cover claims for costs associated with the administration of PROVENGE effective for dates on or after June 30, 2011. This now takes the average time to pay physicians to 30 days according to the company.
Dendreon shares are up over 8% at $9.03 in pre-market trading with about 55 minutes until the market opens and the 52-week trading range is $6.46 to $43.96.
JON C. OGG