When a relative -- I'll call her "M" to protect her privacy -- told me a few months ago that she and another relative who I'll call "D" were thinking of buying Dendreon Corp. (NASDAQ: DNDN), a biotech stock that at one time was a Wall Street favorite, I wasn't happy. The stock was getting pounded because of concerns about whether the Seattle-based company would get FDA approvals for its Provenge prostate cancer treatment. It turns out my skepticism was right and "M" and "D" were wrong.

Dendreon is basically a one-trick pony, and a money-losing one. As of June 30, the company had an accumulated deficit of $445.5 million. Its shares have plunged more than 50% since May, when the FDA didn't approve Provenge as had been expected.. The stock fell again in July after the company said the SEC was conducting an informal inquiry and that it was hit with a shareholder lawsuit.

Investors' hopes were rekindled again earlier this month after Dendreon released what was seen as promising results for its Neuvenge treatment for breast cancer. Forbes magazine, though, cautions against reading too much into these results.

"While the Neuvenge results were positive, Dendreon investors will have to be patient," the magazine said. "The drug's human trial remains in the early stage, meaning that Neuvenge has a long way to go before it nears Food and Drug Administration approval. Investors remain concerned that Neuvenge could go the way of Provenge."

Provenge remains Dendreon's bread and butter -- at least it would be if the company actually had products. The company made that point very clear in a recent filing with the SEC. "If we fail to obtain FDA approval for Provenge or fail to successfully commercialize Provenge, our business would be harmed and our stock price would likely decline," the filing said.

How true.

Hopefully, M&D will eventually recoup some of their losses so they can focus on more important things like spoiling grandchildren.