Canada’s Valeant to sell Den­dreon unit to San­power for $ 820m

Global Times - - Bizoverview -

Canada’s Valeant Phar­ma­ceu­ti­cals In­ter­na­tional Inc said its af­fil­i­ate will sell its Den­dreon cancer busi­ness to China’s San­power Group Co for $ 819.9 mil­lion, as the drug­maker con­tin­ues to shed its non- core as­sets to re­pay debt.

Den­dreon makes the prostate cancer vac­cine Provenge, which was ap­proved by the US Food and Drug Ad­min­is­tra­tion in 2010.

“With this sale, we are bet­ter align­ing our prod­uct port­fo­lio with Valeant’s new op­er­at­ing strat­egy by ex­it­ing the uro­log­i­cal on­col­ogy busi­ness, which is one of our non- core as­sets,” Valeant Chief Ex­ec­u­tive Joseph Papa said in a state­ment on Mon­day.

The com­pany bought Den­dreon in 2015 for about $ 300 mil­lion af­ter reach­ing a deal for Provenge and other as­sets.

Den­dreon filed for bank­ruptcy pro­tec­tion af­ter sales of Provenge fell short of ex­pec­ta­tions and left the com­pany deep in debt.

Valeant is try­ing to re­gain in­vestor con­fi­dence fol­low­ing a tu­mul­tuous year in which its pric­ing strat­egy and ties to a spe­cialty phar­macy led to a wider po­lit­i­cal and reg­u­la­tory scru­tiny.

In Au­gust, the com­pany said it was eye­ing $ 8 bil­lion worth of sales for its non- core as­sets and could ac­cept of­fers for its main busi­nesses.

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