Valeant Pharmaceuticals to sell female libido drug business Sprout to ex-owners
Pharma industry news : Valeant Pharmaceuticals International has reached a deal through one of its affiliates to sell Sprout Pharmaceuticals, its female libido drug business back to its former owners.
As per the deal, Valeant Pharmaceuticals will receive royalty of 6% on global sales of Sprout Pharmaceuticals’ female libido drug Addyi (flibanserin). The Canadian specialty pharma company will be entitled for the payment of Addyi female viagra royalty, 18 months from the signing of the sale transaction.
It was only in August 2015 that Valeant Pharmaceuticals had acquired Sprout Pharmaceuticals, a female libido drug company to foray into the sexual health sector. The acquisition came almost soon after flibanserin 100mg, later on branded as Addyi was approved by the US Food and Drug Administration (FDA).
The US drug regulator approved the female libido drug Addyi for treating acquired, generalized hypoactive (low) sexual desire disorder (HSDD) in women who did not enter menopause.
Commenting on the divestiture of the female libido drug business, Joseph Papa, the Chairman and CEO of Valeant Pharmaceuticals said: “Returning Sprout to its former owners will enable us to further streamline our portfolio and reduce complexity in our business.
“As we transform Valeant, we are focusing our resources on our core businesses to best serve our shareholders, customers and patients. These areas include eye health, gastroenterology and dermatology.”
Addyi female libido drug side effects include extreme low blood pressure and fainting in women who consume it. Apart from that women are strictly advised not to take any alcohol if they are on the female libido drug Addyi.
For Sprout Pharmaceuticals, Addyi female Viagra is the only approved drug and is also the only sexual drug of the company to be available for sale in the market.
Post transaction, Valeant Pharmaceuticals doesn’t expect to have any obligations associated with the 2015-deal it made to acquire the female libido drug business. As part of it, the Canadian specialty pharma company frees itself from sharing of any future profits of Addyi female Viagra with the ex-shareholders of Sprout Pharmaceuticals.
Valeant Pharmaceuticals also revealed that an ongoing litigation filed on behalf of the ex-Sprout shareholders will be scrapped with prejudice.
The transaction concerning the female libido drug business Sprout Pharmaceuticals is likely to be closed by the end of this year if it can clear certain closing conditions.
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