Dendreon sells Victrelis royalties to CPPIB for $125mm

Cancer therapeutics company Dendreon Corp. has decided to sell its royalty interest related to the recently approved hepatitis C drug Victrelis (boceprevir) to CPPIB Credit Investments for $125mm in cash. The therapy was originally developed by Corvas International and Schering-Plough under a 1997 agreement that held S-P (now owned by Merck & Co. Inc.) responsible for undisclosed royalties to Corvas. When Dendreon merged with Corvas in 2003, it inherited the royalty payments, and has now chosen to boost its cash position through the sale to CPPIB. The purchase marks the second in as many months for the investor (which is owned by the CPP Investment Board); in November, it paid $75mm for the US royalties to Pozen's migraine treatment Treximet.