Sanpower Group completes acquisition of Dendreon from Valeant

Sanpower Group, a Chinese private conglomerate, announced the completion of its 100 per cent acquisition of Dendreon, from Valeant Pharmaceuticals International, Inc. for $819.9 million in cash. Dendreon’s core product, PROVENGE, is the first and only FDA-approved cellular immunotherapy for prostate cancer.

PROVENGE was officially approved by U.S. Food and Drug Administration in April 2010 for treatment of asymptomatic or minimally symptomatic metastatic castration-resistant prostate cancer (mCRPC). More importantly, PROVENGE, for the first time, has systematically and clinically proven that immune system can effectively curb tumors and prolong life expectancy, thus opening the door to immunotherapy.

PROVENGE has treated more than 20,000 patients since its entry to the US market in 2010, and its efficacy and safety have been fully confirmed. PROVENGE is reimbursed by the vast majority of insures, including Medicare contractors and commercial plans.

Sanpower Group intends to maintain the continuity of Dendreon’s US team, and facilitate the company’s continued steady growth through a number of approaches. In particular, Sanpower plans to promote PROVENGE’s penetration outside of the US, starting with China and Southeast Asia. Sanpower Group currently possesses the largest umbilical cord blood banking operations in China and Southeast Asia, and services more than six million senior care customers and operates a market-leading genetic testing business in China — all business lines with great synergy potential. The Group’s extensive resources in Asia will enable Dendreon to expand its geographic coverage, explore additional clinical programs and enrich its transaction pipeline with a view to maximize the company’s commercial and clinical potential.

This acquisition represents the first time a Chinese enterprise has ever acquired an American-made, innovative biotechnology. It is also the first time a Chinese enterprise has ever acquired a cellular immunotherapy overseas. Yuan Yafei, Chairman of Sanpower Group, remarked "The deal is well-concluded. Given Sanpower’s formidable cord blood storage resources and other medical assets throughout China and Southeast Asia, we believe Dendreon will be well served in joining the Sanpower family, where it will be better positioned to accelerate growth and access attractive new markets."