Valeant Completes Sale Of Sprout Pharmaceuticals Subsidiary To Former Shareholders Of Sprout Pharmaceuticals
Valeant Pharmaceuticals International, Inc. (NYSE: VRX and TSX: VRX) ("Valeant" or the "Company") today announced that its affiliate has completed the divestiture of the Sprout Pharmaceuticals subsidiary ("Sprout") 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. In connection with the sale, Valeant has provided a $25 million 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.
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