Valeant Bids for Dendreon’s Immunotherapy
Valeant Pharmaceuticals International, Inc. has entered into a “stalking horse” asset purchase agreement to acquire certain assets of Dendreon Corporation for $296 million in cash. Under the agreement, Valeant will acquire the worldwide rights to Dendreon’s Provenge (sipuleucel-T) product and certain other Dendreon assets. Provenge is an immunotherapy treatment designed to treat men with advanced prostate cancer by taking the body’s own immune cells and reprograming them to attack advanced prostate cancer. The product was approved by the US Food and Drug Administration (FDA) in April 2010 and had realized revenues of approximately $300 million in 2014. The therapy was approved by the European Medicines Agency in 2013.
Dendreon has been a debtor pursuant to Chapter 11 of the US Bankruptcy Code since November of 2014. The asset purchase agreement constitutes a “stalking horse bid” in a sale process being conducted under Section 363 of the US Bankruptcy Code. As the “stalking horse bidder,” Valeant will be entitled to a break-up fee and expense reimbursement if it ultimately does not prevail as the successful bidder at a subsequent auction for Dendreon’s assets. Valeant’s role as a stalking horse bidder, and the sale itself, are subject to approval by the Bankruptcy Court. In addition, completion of the transaction remains subject to higher or better offers at such auction and customary closing conditions.
Source: Valeant Pharmaceuticals