Update, 8:13 am EDT: Jason deBruyn of the Triangle Business Journal alerted me that the deal has officially gone through.
Valeant Pharmaceuticals International, Inc., released a statement this morning confirming that the deal is for $1 billion, with additional cash payments based on "achievement of certain milestones." Sprout Pharmaceuticals will be a wholly-owned division of Valeant and will remain in Raleigh, North Carolina. CEO Cindy Whitehead will lead this division through the U.S. launch and global commercialization of Addyi (flibanserin), the non-hormonal drug approved on Tuesday, August 18, for the treatment of hypoactive sexual desire disorder in premenopausal women.
The resources of Valeant will be of certain benefit, in my opinion, in maximizing the safe and appropriate use of Addyi, which comes with a black box warning for hypotension and syncope when used in combination with alcohol or drugs that slow flibanserin metabolism. As a condition of approval, the FDA has required that Addyi's launch be accompanied by a strict Risk Evaluation and Mitigation Strategy (REMS) that will enforce prescriber and pharmacy education and certification, with an enhanced post-marketing surveillance program.
Jonathan D. Rockoff of the Wall Street Journal reported overnight that Canadian pharmaceutical company is in negotiations with Raleigh-based Sprout Pharmaceuticals to acquire the company, its employees and leadership team, and its newly-approved womens libido pill, Addyi (flibanserin) for $1 billion.
Rockoff cites "a person familiar with the matter." He reports that the deal will be all cash, with Valeant paying $500 million upfront and a second installment next year.
Sprout is currently privately-held, with CEO Cindy Whitehead reporting about 100 investors who've provided about $100 million to support development of the centrally-acting flibanserin for premenopausal women with low sexual arousal and interest.
I have reached out to Sprout's press representative for comment.
