Valeant pays £ 650m, $1bn to acquire Addyi “female viagra”

Following FDA approval  Canadian Drugs Group, Valeant, has agreed to pay  £ 650m, $1bn to acquire the owner of the first drug dubbed as  “female Viagra” designed to boost a woman’s libido. The company will pay $ 500m cash upfront  for Sprout Pharmaceuticals and the remainder early next year.  Sprout’s investors will also be entitled to a share of  future profits related to the sales of  the treatment, sold under Addyi.

The husband and wife team Roger and Cindy Whitehead, as well as 100 private individuals who invested a total of $100m in the company, which saw tenfold return after FDA approval. This drug was twice previously been rejected. Cindy Whitehead will join Valeant and continue to run the business, which will be headquartered in North Carolina.

Mike Pearson, Valeant CEO said, the group would eventually acquire other drugs aimed at females to build a women’s health franchise under the Sprout brand.A Key point of the medical studies  of Addyi was increased sexual activity with side effect of dizziness and low blood pressure.

Sprout estimates one in 10 women suffer from the disorder. Addyi is a niche medicine for  a rare and distressing condition.