Valeant sells low-selling female libido drug
Embattled drug company Valeant Pharmaceuticals has agreed to sell Sprout Pharmaceuticals, the maker of "female Viagra" drug Addyi, back to Sprout's shareholders in exchange for a 6% royalty that starts 18 months from when the deal closes. A lawsuit accusing Valeant of botching the Addyi rollout and pricing also will be dropped.
The bottom line: Valeant's $1 billion deal for Sprout has been a major bust, considering analysts estimate sales of Addyi are less than $10 million this year. The drug itself received federal approval on questionable grounds, given its lack of clinical effectiveness and side effects.