Sprout Pharmaceuticals to be Acquired by Valeant Pharmaceuticals in $1 Billion Deal

Valeant Pharmaceuticals (NYSE:VRX) has announced a deal to acquire Sprout Pharmaceuticals, the company that just won the FDA’s approval for the controversial female libido drug Addyi.
According to Fierce Biotech:

An aggressive biopharma buyer that’s currently in hot water with Congress over the way it multiplies a drug’s price once it’s in the portfolio, Valeant says it is paying $500 million upfront and another $500 million in Q1 2016 for a clean takeout that includes hiring up all 25 or so employees at Sprout as they go about the most closely-launched drug launch in recent times. Sprout investors will also get a share of the profits.
Valeant billed the buyout as a move into women’s health, with plans to build a new division around this drug.