 "Valeant buys Addyi maker Sprout Pharma for $1 bn")
Canadian firm Valeant Pharmaceuticals International Inc has agreed acquire Sprout Pharmaceuticals Inc, the maker of female libido drug Addyi, for approximately $1 billion in cash, plus a share of future profits based upon the achievement of certain milestones.
On August 18, 2015, Sprout received approval from the US Food and Drug Administration (FDA) for its new drug flibanserin, marketed under Addyi brand in the US. Addyi has demonstrated improvements in desire for sex, reducing distress from the loss of sexual desire and increasing the number of satisfying sexual events. Sprout also has global rights for flibanserin. Valeant will leverage its global scale to register flibanserin internationally.
Sprout focuses solely on the delivery of a treatment option for the unmet need of premenopausal women with acquired, generalised Hypoactive Sexual Desire Disorder (HSDD) as characterised by low sexual desire that causes marked distress or interpersonal difficulty and is not due to a co-existing medical or psychiatric condition, problems within the relationship, or the effects of a medication or other drug substance.
Following the closing of the acquisition, Sprout will remain headquartered in Raleigh, USA, and become a division of Valeant. Cindy Whitehead, chief executive officer of Sprout, will join Valeant to lead this division dedicated to the introduction and global commercialisation of Addyi.
J Michael Pearson, chairman and chief executive officer, Valeant, said, “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."
Under terms of the acquisition agreement, Valeant will pay approximately $500 million, subject to customary purchase price adjustments, upon the closing of the transaction and an additional payment in the amount of $500 million, payable in the first quarter of 2016, plus a share of future profits based upon the achievement of certain milestones.
On August 18, 2015, Sprout received approval from the US Food and Drug Administration (FDA) for its new drug flibanserin, marketed under Addyi brand in the US. Addyi has demonstrated improvements in desire for sex, reducing distress from the loss of sexual desire and increasing the number of satisfying sexual events. Sprout also has global rights for flibanserin. Valeant will leverage its global scale to register flibanserin internationally.
Sprout focuses solely on the delivery of a treatment option for the unmet need of premenopausal women with acquired, generalised Hypoactive Sexual Desire Disorder (HSDD) as characterised by low sexual desire that causes marked distress or interpersonal difficulty and is not due to a co-existing medical or psychiatric condition, problems within the relationship, or the effects of a medication or other drug substance.
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Valeant expects Addyi to be available in the US in the fourth quarter of 2015 through prescribers and pharmacies that have been certified under the US FDA's comprehensive Risk Evaluation and Mitigation Strategy (REMS) program to assure safe use.
Following the closing of the acquisition, Sprout will remain headquartered in Raleigh, USA, and become a division of Valeant. Cindy Whitehead, chief executive officer of Sprout, will join Valeant to lead this division dedicated to the introduction and global commercialisation of Addyi.
J Michael Pearson, chairman and chief executive officer, Valeant, said, “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."
Under terms of the acquisition agreement, Valeant will pay approximately $500 million, subject to customary purchase price adjustments, upon the closing of the transaction and an additional payment in the amount of $500 million, payable in the first quarter of 2016, plus a share of future profits based upon the achievement of certain milestones.