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Jan 29 (Reuters) - Bankrupt drugmaker Dendreon Corp has reached a stalking-horse deal with Canada'sValeant Pharmaceuticals International Inc to sell theworldwide rights to its cancer vaccine, Provenge, and certainassets for $296 million.
The deal is subject to higher and better bids and extendedthe bid deadline to Feb. 10 for interested parties toparticipate in an auction, Dendreon said on Thursday.
A stalking-horse bidder often helps draw others to anauction by setting a floor price, but they also require thebankrupt company to commit to paying break-up and other fees ifthe stalking horse is outbid.
Seattle-based Dendreon filed for bankruptcy protection inNovember, after sales of Provenge fell short of expectations andleft the company deep in debt.
After the drug's approval by U.S. regulators in 2010, hopeswere high that Provenge would become a blockbuster. But adoptionof the drug, an injection to reprogram the immune system toattack advanced prostate cancer cells, was hindered by its heftyprice tag and uncertainty over insurance coverage.
"We are confident that this process will result in a strongnew owner for Provenge, and that patients will continue toreceive treatments with no disruption moving forward," DendreonChief Executive Thomas Amick said in a statement.
Laval, Quebec-based Valeant failed in November to buyAllergan Inc, when the latter accepted a higher offerfrom Actavis Plc.
Valeant said last month that it was targeting acquisitionsin Asia, the Middle East, Africa and Latin America. It alsowants to build up its U.S. dental business and its dermatology,surgical and ophthalmology lines.
"We believe that oncology has similar characteristics to ourcurrent therapeutic portfolios ... We have not previously foundan economic way to enter this market," Valeant CEO MichaelPearson said in a statement.
Valeant said Provenge had realized revenue of about $300million in 2014.
Dendreon said in court documents in December that more than40 parties had signed nondisclosure agreements, indicatinginterest in bidding on its assets.
Assuming additional qualified bids are submitted, an auctionwould be held on Feb. 12, Dendreon said.
Weil, Gotshal & Manges LLP is Valeant's legal adviser.Skadden, Arps, Slate, Meagher & Flom LLP is serving asDendreon's legal adviser while AlixPartners is its financialadviser. (Reporting by Supriya Kurane in Bengaluru; Editing by GopakumarWarrier)
Jan 29 (Reuters) - Bankrupt drugmaker Dendreon Corp has reached a stalking-horse deal with Canada'sValeant Pharmaceuticals International Inc to sell theworldwide rights to its cancer vaccine, Provenge, and certainassets for $296 million.
The deal is subject to higher and better bids and extendedthe bid deadline to Feb. 10 for interested parties toparticipate in an auction, Dendreon said on Thursday.
A stalking-horse bidder often helps draw others to anauction by setting a floor price, but they also require thebankrupt company to commit to paying break-up and other fees ifthe stalking horse is outbid.
Seattle-based Dendreon filed for bankruptcy protection inNovember, after sales of Provenge fell short of expectations andleft the company deep in debt.
After the drug's approval by U.S. regulators in 2010, hopeswere high that Provenge would become a blockbuster. But adoptionof the drug, an injection to reprogram the immune system toattack advanced prostate cancer cells, was hindered by its heftyprice tag and uncertainty over insurance coverage.
"We are confident that this process will result in a strongnew owner for Provenge, and that patients will continue toreceive treatments with no disruption moving forward," DendreonChief Executive Thomas Amick said in a statement.
Laval, Quebec-based Valeant failed in November to buyAllergan Inc, when the latter accepted a higher offerfrom Actavis Plc.
Valeant said last month that it was targeting acquisitionsin Asia, the Middle East, Africa and Latin America. It alsowants to build up its U.S. dental business and its dermatology,surgical and ophthalmology lines.
"We believe that oncology has similar characteristics to ourcurrent therapeutic portfolios ... We have not previously foundan economic way to enter this market," Valeant CEO MichaelPearson said in a statement.
Valeant said Provenge had realized revenue of about $300million in 2014.
Dendreon said in court documents in December that more than40 parties had signed nondisclosure agreements, indicatinginterest in bidding on its assets.
Assuming additional qualified bids are submitted, an auctionwould be held on Feb. 12, Dendreon said.
Weil, Gotshal & Manges LLP is Valeant's legal adviser.Skadden, Arps, Slate, Meagher & Flom LLP is serving asDendreon's legal adviser while AlixPartners is its financialadviser. (Reporting by Supriya Kurane in Bengaluru; Editing by GopakumarWarrier)
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