Valeant sheds female libido pill

Two years after paying $1 billion to acquire Sprout Pharmaceuticals, maker of the female sexual dysfunction treatment Addyi (flibanserin), Valeant Pharmaceuticals is divesting the pill to former Sprout shareholders for next to nothing. After 18 months, Valeant will get a 6% royalty on sales of the drug, which has had limited sales since winning FDA approval in August 2015. Valeant will also loan $25 million to the Sprout shareholders to support initial operating expenses. The shareholders had sued Valeant, claiming it was not sufficiently marketing Addyi.