Following US Food and Drug Administration approval of a drug to treat sexual dysfunction in women, the drug’s developer, Sprout Pharmaceuticals of Raleigh, North Carolina, was bought: by Valeant Pharmaceuticals in Canada for about $1 billion in cash, The New York Times’s DealBook reported last week (August 20).
“This partnership with Valeant allows us the capacity to now ensure broader, more affordable access to all the women who have been waiting for this treatment,” Cindy Whitehead, Sprout’s CEO, said in a statement. “Beyond building this in the United States, Valeant also offers us a global footprint that could eventually bring Addyi to women across the globe.”
Valeant CEO J. Michael Pearson told DealBook that his firm expects health plans will cover the “female Viagra” drug, known as Addyi. But time will tell whether the buy was a smart one. In the coming months, said Pearson, “we’ll have a pretty good sense of whether we threw away a billion dollars or whether we got a really, really good deal.”