, Columnist
Valeant's Sprout Problem
When aggressive acquisition and pricing tactics turn sour.
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Sprout investors have abandonment issues.
Valeant spent about $1 billion last August to acquire Sprout, which makes the female libido pill Addyi. It was Valeant's last big buyout before a $30-billion-plus debt load and accounting troubles torpedoed further M&A. As a capstone to a years-long, $34 billion deal spree, Sprout is looking pretty shabby. Addyi sales have been awful, and researchers question its effectiveness. Now former Sprout investors say Valeant is botching the drug's launch and charging too much for it -- alleged neglect that may end up violating the companies' merger agreement.