Valeant Pharmaceuticals to Buy Sprout Pharmaceuticals in US$1 Billion Deal
Published By : 21 Aug 2015 | Published By : QYRESEARCH
Quebec-based pharmaceutical company Valeant Pharmaceuticals has decided to buy a U.S. company which is known for a drug that claims to treat a sexual condition in women called hypoactive sexual desire disorder (HSDD).
Valeant has agreed on a deal worth nearly US$1 billion in cash along with a share of the future profits for taking over Sprout Pharmaceuticals, headquartered in North Carolina.
Sprout has only recently obtained the clearance from the U.S. Federal Drug Association (U.S. FDA) for marketing its drug Addyi in the markets of the United States.
The drug, as the companies say, will be used for treating the condition HSDD in premenopausal women. Valeant expects that the drug Addyi will be available in the U.S. market by the end of this year via certified pharmacies and prescribers and it is aiming at take the drug to the global market as well.
Valeant’s chief executive and chairman Michael Pearson stated in his announcement regarding the deal that the deal gives the company an opportunity to add to its portfolio a medication that has unique impact on women. The first ever treatment for a commonly reported variety of sexual dysfunction condition in women will allow the company to enter a lucrative marketplace with almost no competition.
Through the deal, Sprout will become a part of Valeant but will still remain under the leadership of Sprout’s current chief executive.
Cindy Whitehead, CEO of Sprout, has said that the partnership will strengthen the company’s capability of ensuring a much broader and more affordable access to the medicine for all the women out there waiting for the treatment.
Beyond making the treatment available in the United States, Valeant will also make the medicine available in the international market, allowing for a more expansive coverage for the medication.