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Valeant $400M offer only qualified bid for insolvent U.S. cancer vaccine maker

LAVAL, Que. – Valeant Pharmaceuticals International, Inc. (TSX:VRX) has emerged the winner of a court-supervised auction for the assets of insolvent U.S. drugmaker Dendreon Corp., which holds the rights to Provenge, a prostate cancer vaccine.

The Quebec based pharmaceutical and health-care products company says it has been advised its $400-million offer was the only qualified bid received by Tuesday’s deadline for Seattle-based Dendreon.

A hearing at which Dendreon and Valeant will seek the court’s approval of the sale is scheduled for Feb. 20 and Valeant says it hopes to close the transaction by the end of the month.

Dendreon filed for Chapter 11 creditor protection under the U.S. Bankruptcy Act in November.

Provenge had about US$300 million of sales in 2014 and Valeant has said a successful bid could be as a way for it to enter the cancer treatment market.

The Dendreon acquisition would be the first notable deal for Valeant since its failed hostile takeover bid for Botox-maker Allergan, which accepted an offer worth about US$66 billion from Actavis.