Valeant Pharmaceuticals International Inc.'s affiliate completed the sale of its Sprout Pharmaceuticals unit to Sprout2 Inc. in exchange for a 6% royalty on global sales of Addyi starting in May 2019.
Addyi, which is used by premenopausal women to treat hypoactive sexual desire disorder, is the only approved and commercialized Sprout product.
In connection with the divestiture, the company has provided a $25 million loan to fund initial operating expenses. No further details of the sale were disclosed in Valeant's statement.
Valeant had agreed to buy Sprout in 2015 for about $1 billion in cash plus a share of future profits based on certain milestones. With the completion of the sale to Sprout2, Valeant has been released from the ongoing obligations of the original transaction to split future profits with the former Sprout shareholders, as well as spending on marketing efforts.
In addition, the parties to the litigation against Valeant brought on behalf of the former Sprout shareholders have filed a joint stipulation with the court that such claims be dismissed with prejudice.
