Valeant Pharmaceuticals agreed to acquire Sprout Pharmaceuticals for approximately $1 billion in cash, plus a share of future profits based upon the achievement of certain milestones. 

The FDA on Tuesday approved Sprout’s New Drug Application for flibanserin, which will be marketed as Addyi in the U.S. to improve women’s sexual desire.  Sprout also has global rights for flibanserin.

Sprout specifically has focused on the delivery of a treatment option for the unmet need of premenopausal women with acquired, generalized Hypoactive Sexual Desire Disorder not due to a co-existing medical or psychiatric condition, problems within the relationship, or the effects of a medication or other drug substance. Addyi is not indicated for use in postmenopausal women or men or to enhance sexual function.

Valeant expects Addyi to be available in the U.S. in the fourth quarter of 2015. Following the closing of the acquisition, Sprout will remain headquartered in Raleigh, NC, and become a division of Valeant. Cindy Whitehead, CEO of Sprout, will join Valeant to lead this division and report to Anne Whitaker, executive vp and company group chairman.