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Valeant Returns $1bn Female Libido Drug For Free

 
• By Kevin Grogan

At first glance, giving back Addyi to the original owners for next to nothing looks like a complete disaster but investors are relieved debt-ridden Valeant has managed to offload another asset.

Money down drain
Valeant's acquisition of Sprout was not money well-spent • Source: Shutterstock

Just over two years after buying Sprout Pharmaceuticals Inc. and its controversial female sexual dysfunction drug Addyi (flibanserin) for $1bn, Valeant Pharmaceuticals International Inc. has decided the deal was indeed a dud and is giving the pill back to the previous owners for next to nothing.

The Canadian drugmaker has decided to cut its considerable losses and sell the subsidiary and Addyi to "a buyer affiliated with former shareholders of Sprout" in exchange for a 6% royalty on global sales of the drug

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