Quebec-based Valeant Pharmaceuticals is prepared to pony up US$1 billion to acquire the makers of the Addyi drug — otherwise known as the “female Viagra” pill.
Sprout Pharmaceuticals will receive US$500 million cash upfront in the deal, announced Thursday (August 20), while the remainder will come within the next year.
The U.S. Food and Drug Administration (FDA) only approved the pill on Tuesday (August 18) after twice previously rejecting it over concerns about the pill’s claims and its side effects.
Addyi carries warnings over low blood pressure and fainting, especially when mixed with alcohol.
And while Addyi has been described as the “female Viagra” pill, Viagra itself takes aim at biological dysfunctions in men. Sprout Pharmaceutical’s pill, however, is meant to stimulate the female sex drive in the brain.
The acquisition is scheduled to close in the third quarter, while the Addyi pill is expected to be available in the U.S. by the end of the year.
