Valeant Completes Sale of Sprout Pharmaceuticals Subsidiary to Former Shareholders of Sprout Pharmaceuticals.
M2 EQUITYBITES-December 22, 2017-Valeant Completes Sale of Sprout Pharmaceuticals Subsidiary to Former Shareholders of Sprout Pharmaceuticals
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22 December 2017 - An affiliate of Canadian drugmaker Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) has completed the divestiture of a subsidiary of US-based sexual health specialist Sprout Pharmaceuticals to Sprout2 Inc., an entity affiliated with certain former shareholders of Sprout, in exchange for a 6% royalty on global sales of ADDYI (flibanserin) beginning in May 2019, the company said.
Valeant acquired Sprout in 2015.
In connection with the sale, Valeant has provided a USD 25m loan to fund initial operating expenses.
In connection with the completion of the sale, Valeant has been released from the ongoing obligations of the original transaction to split future profits related to the sale of ADDYI (flibanserin) with the former shareholders of Sprout, as well as certain related provisions, including the obligations to make certain marketing and other expenditures.
Additionally, the parties to the existing litigation against the company brought on behalf of the former shareholders of Sprout have filed a joint stipulation with the court that such claims be dismissed with prejudice.
Valeant Pharmaceuticals International is a multinational specialty pharmaceutical company that develops, manufactures and markets a range of pharmaceutical products primarily in the areas of dermatology, gastrointestinal disorders, eye health, neurology and branded generics.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Dec 22, 2017|
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