Valeant Raises Offer For Dendreon Assets

(RTTNews) - Valeant Pharmaceuticals International, Inc. (VRX, VRX.TO) announced that it entered into an amended and restated "stalking horse" asset purchase agreement to acquire the world-wide rights to Dendreon's PROVENGE (sipuleucel-T) product and certain other assets of Dendreon Corp. (DNDN).

In response to competing bids, Valeant has raised its offer to $400 million in cash for the assets, which realized combined revenues of approximately $300 million in 2014.

Valeant had previously announced that, on January 29, 2015, it had entered into an asset purchase agreement constituting a "stalking horse bid" in a sale process being conducted under Section 363 of the U.S. Bankruptcy Code. The amended and restated asset purchase agreement increases the purchase price from the original $296 million purchase price.

At a hearing held today, the Bankruptcy Court formally approved Valeant's role as a stalking horse bidder. As the "stalking horse bidder," Valeant is 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.

Completion of the transaction remains subject to higher or better offers at such auction, Bankruptcy Court approval, and customary closing conditions.

As previously announced, the bid deadline for interested parties to submit qualified bids to participate in an auction for Dendreon's assets is scheduled for February 10, 2015 at 5:00 p.m. Eastern Time. Assuming additional qualified bids are submitted, an auction would be held on February 12, 2015.