- Dendreon, best known as the proprietor of Provenge (sipuleucel-T) for treatment of prostate cancer, is going on the auction block. Valeant plans to offer $296 million.
- Although Dendreon is currently in bankruptcy proceedings, the company has set a bidding floor of $275 million. The auction is slated for February 12.
- As a stalking horse bidder, Valeant will enjoy certain protections, including a break-up fee and reimbursement for its expenses if it is outbid.
Despite the fact that Dendreon's Provenge is the only FDA-approved immunotherapy treatment for prostate cancer, it has not been able to find a distribution partner in Europe—and in fact there are other treatment options in different therapeutic classes for prostate cancer.
To make matters worse, last summer, Dendreon announced that it would not be able to service its $620 million debt obligation due in January 2016.
What some analysts are wondering, however, is whether or not the bid is a good one on Valeant's part—or if the company is just looking for its next target after the collapse of a hostiled takeover bid for Allergan.