Bill Ackman's relationship with Valeant has paid off big-time since the hedge fund manager first teamed up with the Canadian pharma on its hostile pursuit of Allergan. And this time, it's an investment in Sprout Pharmaceuticals--Valeant's latest pickup--that's bringing in the bucks.
The first half of the year has provided a good ride for Big Pharma and its investors with indices up in the U.S. and Europe. Even Japanese drugmakers avoided the side effects of China's stock market meltdown and saw values rise 23%. But, of course, averages come from the highs and the lows and some players have actually seen share price declines during this bull market.
That didn't take long. Just one day after Sprout Pharmaceuticals won a controversial FDA approval for new female libido drug Addyi (flibanserin), serial buyer Valeant has agreed to buy the company.
A little more than a day after little Sprout Pharmaceuticals won a controversial FDA approval to market Addyi (flibanserin) as a new drug that can help inspire sexual desire among women, Valeant Pharmaceuticals announced a deal to acquire the one-drug company in a $1 billion buyout.
A pair of lawmakers is taking a look into recent drug price increases--and as part of the investigation, it wants some information from Valeant.
The addition of Commonwealth Laboratories' blood test for irritable bowel syndrome in the U.S. and Canada will help Valeant's drug compete with rival Allergan in that therapeutic arena. The cost of the impending transaction was not disclosed, but it includes sales-based milestone payments in addition to up upfront payment.
Valeant's sales force is already undergoing a realignment, but now, it's changing up its rep compensation model, too.
Valeant's M&A-focused business model may have its critics, but it came through for the company in Q2, helping it beat analyst estimates for both EPS and revenue.
With its $800 million deal for Amoun Pharmaceutical, Valeant picks up what the Egyptian drugmaker says is one of the largest and most up-to-date pharmaceutical facilities in Africa and the Middle East.
Last month, reports said Valeant was stepping up talks on a deal for one of Egypt's largest drugmakers. And now, it's pulled the trigger.