Sanpower Group Completes the Acquisition of Dendreon from Valeant
Sanpower Group, a Chinese private conglomerate, announced the completion of its 100% acquisition of Dendreon, from Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) for $819.9 million in cash. Dendreon’s core product, PROVENGE, is the first and only FDA-approved cellular immunotherapy for prostate cancer.
Posted by Judy Zhu on Monday, 7th August 2017
PROVENGE was officially approved by U.S. Food and Drug Administration in April 2010 as a therapeutic tool in treatment of asymptomatic or minimally symptomatic metastatic castration-resistant prostate cancer (mCRPC). More significantly, PROVENGE has clinically demonstrated that modulation of the immune system can effectively curb tumors and prolong life expectancy for the first time, thus illuminating the therapeutic potential of immunotherapy.
PROVENGE has been used to treat more than 20,000 patients since 2010. It is reimbursed by most insurers, including Medicare contractors and commercial plans.
Sanpower Group intends to continue the steady growth of Dendreon started by the US team, beginning with promotion of PROVENGE outside of the US, in particular China and Southeast Asia. Sanpower Group currently possesses the largest umbilical cord blood banking operations in China and Southeast Asia, with more than six million senior care customers and operates a market-leading genetic testing business in China — all business lines with great synergy potential. Sanpower’s extensive resources in Asia will enable Dendreon to expand its geographic market, 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 company. It is also the first time a Chinese enterprise has ever acquired a cellular immunotherapeutic agent 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."
About Sanpower Group
Established in 1993, Sanpower Group has become one of the largest, private conglomerates in China. Headquartered in Nanjing, it offers a global platform for its three primary sectors: Healthcare, Retail and Financial Services. Sanpower Group has controlling stakes in more than 100 subsidiaries and has a 100,000-strong global workforce, including 40,000 based internationally. Sanpower Group currently generates over RMB 120 billion in annual revenue.
In 2014 Sanpower Group bought a UK based retail company House of Fraser to bring international brands into Chinese market.
In recent years, the Sanpower Healthcare Sector has developed as a corporate leader in multiple fields including genetic testing and precise medical care.
Previous acquisitions include AnKangTong, Natali, and A.S. Nursing Company. In 2016, the group announced the acquisition of China Cord Blood Corporation and Shandong Cord Blood Bank, making it the world’s largest cord blood banking operator. The group also owns many medical and health institutions.
The acquisition of PROVENGE is an important step in the area of precision medical treatment for Sanpower Group. The vast data from its cord blood bank provides the foundation for precise medical care. The acquisition of PROVENGE enables the group to develop practical therapeutic applications of its cord blood bank.
The incidence of prostate cancer in China has increased 10-fold within the last 20 years. Therefore, PROVENGE in China will have broad market appeal and many prospects for development. "We aim to introduce one of the most advanced medical technologies and treatments to China and other major Asian markets. We want to make Sanpower Group a leading Chinese enterprise in cellular immunotherapy," said by Chairman Yuan.