Canadian drugmaker Valeant is digging deep to buy Sprout Pharmaceuticals after the US company won approval to sell what’s dubbed the first ‘female Viagra’ drug. The Canadians are banking on the pill’s global success.
Canada’s Valeant Pharmaceuticals announced on Thursday it had acquired US drugmaker Sprout for about $1bn (€896m). The sum would be paid in two installments: $500m upon finalising the transaction, presumably in mid September, and another $500m in the first quarter of 2016, the Montreal-based drugmaker said.
The deal came one day after the US Food and Drug Administration (FDA) cleared the way for Sprout to market its ‘Addyi’ pill, which aims to treat a condition known as “acquired, generalised hypoactive sexual desire disorder (HSDD)”, or sudden and severe loss of libido among women.
Valeant said they expected the medication – colloquially called ‘female Viagra’ – to be available in the US in the fourth quarter this year, and planned to bring the drug to the international market.
“Delivering a first-ever treatment for a commonly reported form of female sexual dysfunction gives us the perfect opportunity to establish a new portfolio of important medications that uniquely impact women,” said J. Michael Pearson, Valeant chairman and chief executive, in a statement.
Under the terms of the acquisition agreement, Valeant will pay a share of future profits tied to achievement of certain milestones.
Viagra with a twist
Sprout’s drug is intended to treat women who report emotional stress due to a lack of libido. It acts on brain chemicals that affect mood and appetite.
“We applaud the efforts of the Sprout team to address this important area of unmet need and look forward to working with them,” Valeant CEO Pearson said.
However, Addyi had previously been rejected twice by the FDA due to lackluster effectiveness and side effects. The drug is expected to come with a strong warning label and an FDA-imposed safety plan for prescribing, which could end up impairing sales.
The warning will alert doctors and patients to the risks of dangerously low blood pressure and fainting, especially when the pill is combined with alcohol. Under the safety plan, doctors will only be able to prescribe Addyi after completing an online certification process that requires counseling patients about the drug’s risks. Pharmacists will also need certification and be required to remind patients not to drink alcohol while taking the drug.
Valeant shares gained to about half a percent to $246 in pre-market trade on the New York Stock Exchange Thursday.
uhe/pad (AFP, AP, dpa, Reuters)
