Sources told Bloomberg that drugmaker Dendreon Corp was looking for buyers. The move to find suitors came after Provenge, the company's prostate-cancer treatment, did not meet initial sales expectations. One of the people with knowledge of the matter said that JPMorgan Chase & Co was helping Dendreon find possible buyers. The drug company was once valued at USD 2 billion. In the past ten years, however, it had incurred USD 2 billion in losses. Bloomberg said the Dendreon now has a market capitalization of around USD 400 million.
Provenge gained approval three years ago. Analysts forecasted that the cancer therapy would be able to fetch sales of USD 4.3 billion by 2020. The estimate had been pared down to USD 476.5 million today. In August, Dendreon also reported that drug sales would not increase in 2013.
Bloomberg reported that Dendreon had been losing money for six straight quarters. From having USD 538.6 million in cash and short-term investments two years ago, the drugmaker was left with USD 207.4 million in June.
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