Valeant confirms $1bn deal for ‘female viagra’ creator Sprout
pharmafile | August 20, 2015 | News story | Manufacturing and Production, Sales and Marketing | Addyi, Sprout, Sprout Pharma, Sprout Pharmaceuticals, Valeant, flibanserin
Canada’s Valeant Pharmaceuticals has confirmed it will pay $1 billion to acquire Sprout Pharmaceuticals, the company behind the female libido drug Addyi.
The deal will see Valeant pay a $500m cash installment up-front and the remaining balance in the first quarter of next year to Sprout, which gained FDA approval for the HSDD treatment this week after a long process and two rejections.
On completion of the acquisition, expected in Q3 2015, Sprout will remain headquartered in Raleigh, North Carolina, and become a division of Valeant. Sprout CEO Cindy Whitehead will join Valeant to lead this new division dedicated to the introduction and global marketing of Addyi, reporting to Anne Whitaker, executive vice president and company group chairman.
Commenting on the deal, Valeant chairman and chief executive, J. Michael Pearson, says: “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.”
Cindy Whitehead comments: “I am extremely proud of the commitment and passion of our 34 employees, who have been mission-driven to get to this breakthrough first for women. 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.”
“The Valeant team is excited to be a part of the launch of this critically important treatment for women, and I am personally delighted to welcome Cindy and her colleagues at Sprout to Valeant,” adds Anne Whitaker, executive vice president and company group chairman.
“The Sprout team, along with the healthcare providers involved in the Addyi pivotal clinical trials, has delivered on its promise to provide access to a safe and effective treatment for a condition that affects millions of women.”
Addyi treats HSDD- defined as a persistent absence of sexual thoughts, fantasies, responsiveness and willingness to engage in sexual activity- by boosting serotonin levels in parts of the brain.
About 10% of 2,400 women in three, 24-week randomised, double-blind, placebo-controlled Addyi trials, reported meaningful improvements in satisfying sexual events, sexual desire or distress. Side effects included dizziness, somnolence, nausea, fatigue, insomnia and dry mouth.
Joel Levy
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