Valeant poised to acquire ‘female viagra’ creator Sprout for $1bn

Canada’s Valeant Pharmaceuticals is reportedly set to pay $1 billion to acquire Sprout Pharmaceuticals, the company behind the female libido drug Addyi.

Addyi (flibanserin), became the first treatment for female hypoactive sexual desire disorder (HSDD) when it was approved by the FDA this week.

The deal will see Valeant pay a $500m cash installment up-front and the remaining balance next year to Sprout, which gained FDA approval for the HSDD treatment after a long process, an assertive marketing campaign and two earlier FDA rejections.

Serial-acquirer Valeant is expected to take on all of North Carolina-based Sprout’s 34 employees, including its leadership. Sprout plans to ramp up its workforce to around 200 in preparation for the drug set to hitting shelves in October.

The Wall Street Journal quoted a source, said to be familiar with the matter, as saying the deal could be announced today, and should close in the third quarter of this year.

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 LevyVale

http://www.pharmafile.com/news/498215/valeant-poised-acquire-female-viagra-creator-sprout-1bn? 

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