In other words, frustrated owners of VRX stock may be not-so-rhetorically demanding an answer to one big question: What exactly is Valeant Pharmaceuticals getting for its $1 billion when it’s already got so much else going on?
About 2 million women are now seeking treatment for the disorder and more are expected to come forward once Addyi is on the market, said Carl Spana, CEO of Palatin Technologies Inc., which is developing its own female sex-drive treatment.
Hypoactive sexual desire disorder, or HSDD, is a persistent or recurrent decrease or lack of sexual desire that causes distress for the patient, may put a strain on relationships with partners, and is not due to the effects of a substance, including medications, or another medical condition.
The acquisition could close in the third quarter, according to a source cited by the Wall Street Journal, which reported Wall Street whispers on Wednesday that the deal was nearing its climax.
The drug followed a long, contentious path to approval, including two previous rejections by the FDA.
Nonetheless, Addyi is the first and only drug treating HSDD on the market, and the massive social-media campaign that backed its approval indicates a substantial demand for some kind of libido drug. Valeant noted the drug is also supposed to increase the number of satisfying sexual events.
For decades, pharmaceutical companies have tried unsuccessfully to develop a female equivalent to Viagra, the blockbuster drug that treats men’s erectile dysfunction by increasing blood flow. And after twice refusing to approve Flibanserin since 2010, citing side effects, the FDA has finally approved it. A “boxed warning” will still point out dangers, such as severely low blood pressure.
The FDA followed the counsel of an expert panel that decided in June that the benefits of the drug outweighed the risks.
By the FDA’s decree, Addyi will be tested in three more experiments to learn more about the alcohol interaction.
Sprout also has global rights for flibanserin. Once the transaction wraps, Sprout will become a division of Valeant run by its current CEO, Cindy Whitehead, from its current North Carolina headquarters.
Asked if he was concerned about potential lawsuits from women claiming to have been harmed by Addyi, Pearson said the risks to patients would be minimized because the drug would only be available through doctors and pharmacies that have been trained in its use.
“I am extremely proud of the commitment and passion of our 34 employees who have been mission-driven to get to this breakthrough first for women”, Whitehead said in a statement.
Nevertheless, even if Addyi only generates sales of $300 million per year, $1 billion isn’t a awful price for Valeant Pharmaceuticals to pay.