“Female viagra” Addyi manfacturer Sprout bought for $1bn by Valeant Pharmaceuticals

Sprout, the group that this week unveiled the first “viagra for women” has been bought by pharma giant Valeant for $1bn (£638m). 

 

Valeant will pay approximately $500m upon the closing of the transaction and an additional payment in the amount of $500m in the first quarter of 2016. 

 

On top of the cash, the deal includes a share of the combined group's future profits “based upon the achievement of certain milestones”. 

 

It opens the door to Valeant entering the field of female sexual dysfunction. On Tuesday Sprout got the green light from the US Food and Drug Administration (FDA) for flibanserin, which Sprout owns the global rights to, and will be marketed as Addyi in the US. 

 

The drug “has demonstrated improvements in desire for sex, reducing distress from the loss of sexual desire and increasing the number of satisfying sexual events”. 

 

Addyi is expected to launch in the US in the fourth quarter of 2015 through certified prescribers and pharmacies. 

 

Sprout will retain its North Carolina headquarters following the deal, though will become a division of Valeant. 

 

Chief executive Cindy Whitehead will join Valeant to lead this division “dedicated to the introduction and global commercialisation of Addyi”. She will report to Anne Whitaker, executive vice president and group chairman. 

 

Whitehead said: "This partnership with Valeant allows us the capacity to now ensure broader, more affordable access to all the women who have been waiting for this treatment. Beyond building this in the United States, Valeant also offers us a global footprint that could eventually bring Addyi to women across the globe."

 

Valeant's chief executive J. Michael Pearson added: "Delivering a first-ever treatment for a commonly reported form of female sexual dysfunction gives us the perfect opportunity to establish a new portfolio of important medications that uniquely impact women. We applaud the efforts of the Sprout team to address this important area of unmet need and look forward to working with them to bring the benefits of Addyi to additional markets around the world."