(Yicai Global) Oct. 10 -- Nanjing Xinjiekou Department Store Co. [SHA:600682] plans to acquire US biomedical firm Dendreon Pharmaceuticals LLC [NASDAQ:DNDN] from Sanpower Group Co., Dendreon's controlling shareholder, to position itself in the healthcare industry.
Xinjiekou Department Store, headquartered in Nanjing, in China's southeastern Jiangsu province, plans to acquire a 100 percent stake in Dendreon Pharmaceuticals from Sanpower Group in the form of share offering, Xinjiekou Department Store announced Oct. 9. The acquisition price may go as high as USD906 million (CNY6 billion).
Sanpower Group is a modern conglomerate with businesses covering information services, healthcare and real estate development. It currently holds 27.32 percent of shares in Xinjiekou Department Store. Sanpower Group obtained 100 percent of Dendreon Pharmaceuticals stock for USD819 million in January.
Dendreon Pharmaceuticals is a high-tech company engaged in the development of immune-therapeutics for cancer. The cell immunotherapy can be used to treat prostate cancer, significantly improving patient survivability, and having the advantage of not excluding other drugs, despite their side effects.
Department stores have confronted the ever-growing impact of e-commerce in recent years, while the attendant rise in rent and labor costs has dealt a double-whammy blow to industry profitability, Xinjiekou Department Store said. The company consequently plans to adjust its development strategy, and extend its tentacles into the elder care and healthcare sectors.