BUSINESS

Valeant raises offer for Dendreon assets to US$400 million to remain lead bidder

02/05/2015 11:11 EST | Updated 04/07/2015 05:59 EDT
LAVAL, Que. - Valeant Pharmaceuticals International has raised its offer for the Provenge prostate cancer vaccine and other assets of U.S. drugmaker Dendreon Corp. by $100 million to $400 million.

The Quebec-based company (TSX:VRX) is the lead bidder in an auction supervised by a U.S. bankruptcy court.

Valeant said Thursday it increased its offer in response to competition.

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.

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

Qualifying bids are to be submitted by Feb 10. The auction will be held Feb. 12.

Valeant (TSX:VRX) would be entitled to a break-up fee and expenses if it is outbid.

A 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.