UPDATE 4-Dendreon hires adviser for int'l pact - source

* Dendreon searches for international licensing partner

* Shares rise 6.2 percent (Adds quotes in paragraphs 11-12, adds closing stock price)

By Jessica Hall and Megan Davies

PHILADELPHIA/NEW YORK, July 23 (Reuters) - Dendreon Corp (DNDN.O) hired JPMorgan Chase & Co (JPM.N) as an adviser to help it find an international licensing partner for its prostate cancer vaccine Provenge, a source familiar with the situation said.

Dendreon is not looking to sell itself outright, but instead wants a partner for Provenge sales outside the United States, the source said.

Dendreon and JPMorgan could not be immediately reached for comment.

Shares of Dendreon hit a high of $25.44 and closed at $24.47, up 6.2 percent, on Nasdaq. Dendreon's rise outpaced the 4.7 percent increase in the Dow Jones Biotech Index .DJUSBT

In April, Dendreon unveiled data showing its experimental immunotherapy Provenge significantly extended survival in late-stage prostate cancer patients, with no major side effects.

Dendreon owns full worldwide Provenge rights and has said it plans to retain U.S. rights and seek a partner for international sales.

Analysts have speculated that an outright acquisition of the company could be possible at the right price. Dendreon has a market capitalization of about $2.6 billion.

"It's an unencumbered asset -- without a web of partnerships already -- so it's a relatively rare commodity," said one health care investment banker, who declined to be named because he was not authorized to speak to the media.

Biotechnology companies have become hot targets for large pharmaceutical companies that face competition from generic drugs and weak pipelines of original drugs in development.

Buying or partnering with other drug companies is a quick and effective way to diversify and fill in gaps in their business.

"These processes often start out as a search for a licensing partner but can end up as a sale of the company if the right offer gets put on the table," said a second health care investment banker, who also declined to be named.

Dendreon Chief Executive Mitchell Gold "is strongly independent but it's not up to him. If the right offer hits the table, it's up to shareholders," the banker said.

Bristol-Myers Squibb Co (BMY.N) late on Wednesday agreed to buy biotechnology company Medarex Inc MEDX.O for $2.4 billion and said it aims to pursue more deals to fulfill its strategy of becoming a bio-pharma leader. [ID:nN22348568]

Medarex's agreement to be acquired at a 90 percent premium sent shares of biotech companies surging on Thursday as investors placed bets on the next takeover target. [ID:nN23380489] (Reporting by Jessica Hall in Philadelphia and Megan Davies in New York; Editing by John Wallace, Derek Caney, Phil Berlowitz) (For more M&A news and our DealZone blog, go to here)