RALEIGH, N.C. (WNCN) – Two days after Sprout Pharmaceuticals’ libido-boosting drug was approved by the U.S. Food and Drug Administration, Valeant Pharmaceuticals reached an agreement Thursday to acquire the Raleigh-based drug company for about $1 billion in cash.
On Tuesday, Sprout received approval from the U.S. Food and Drug Administration (FDA) for flibanserin, a libido-boosting drug. The drug will be marketed as Addyi in the U.S.
Addyi has demonstrated improvements in desire for sex, reducing distress from the loss of sexual desire and increasing the number of satisfying sexual events, a release from Valeant stated.
According to that same release, Sprout has global rights for flibanserin. Valeant will leverage its global scale to register flibanserin internationally.
Valeant expects Addyi to be available in the U.S. in the fourth quarter of 2015 through prescribers and pharmacies that have been certified under the FDA’s comprehensive Risk Evaluation and Mitigation Strategy (REMS) program to assure safe use.
“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,” Sprout Chief Executive Officer, Cindy Whitehead, said.
Under terms of the acquisition agreement, Valeant will pay approximately $500 million 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.
“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,” added 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.”
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