Dendreon Corporation (OTCMKTS:DNDNQ) received approval of the Bankruptcy Court for an order authorizing sale transaction to Valeant Pharmaceuticals International, Inc. (NYSE:VRX) pursuant to the acquisition agreement. It entered into an asset purchase deal, with Valeant that enables it to sell the worldwide rights of PROVENGE(R) and certain other assets for $495 million. Initially the deal price was decided at $400 million. Provenge is the first personalized immunotherapy treatment for advanced prostate cancer.
The robust sale process allowed Dendreon to finalize sale agreement, with Valeant that enhances the value of Dendreon. At the same time, Provenge will remain commercially available to providers and patients. W. Thomas Amick, the CEO and President of Dendreon said that the management is confident that Valeant will convert PROVENGE into a huge success. The patient will be able to get medication, with no disruption moving forward. Amick mentioned that it is company’s employees whose continued dedication, commitment and hard work have resulted in success of Provenge and completion of its sales process.
Dendreon Corporation (OTCMKTS:DNDNQ) expects the completion of sale to occur by the end of February 2015. As previously announced, on February 19, the Debtors, Valeant and Drone Acquisition Sub Inc., a direct subsidiary of Valeant, finalized second time amended and restated acquisition deal. As per the agreement, Valeant agreed to purchase substantially all of the assets and some of the liabilities for an aggregate purchase price of $495 million, inclusive of debtors’ assets.
The deal amount
Out of the total amount, $445.5 million is payable in cash, and $49.5 million is to be paid in the form of common shares of Valeant. Dendreon informed that cash payment will be done after closing of deal, and common shares will be issued after completion of reorganization measures. Dendreon Corporation (OTCMKTS:DNDNQ) filed for protection in September after Provenge failed to succeed in the market. Provenge contributed about $300 million in 2014 revenue.