CEO Of Valeant’s “1B Headache” Is Stepping Down

According to reports, Cindy Whitehead of Sprout Pharmaceuticals is stepping down as CEO:

“I feel like I’ve seen it through to what I wanted to accomplish,” Cindy Whitehead said in an interview with Bizwomen
. “It really was to prove the science, get the approval so that women could have this choice for themselves and then really to build the team to have it really come to the realization of the bigger mission, which is the opportunity for this to go global and to be made widely available to women in an affordable way.”

Sprout is the maker of Addyi, billed as the “female Viagra.” Addyi received FDA approval in August, and Valeant (VRX) acquired the company in October for $1 billion; apparently, her decision to leave was mutual.

The Situation

Addyi was designed to treat low sex drives in premenopausal women. According to Sprout, the drug had previously demonstrated improvements in desire for sex; to help consumers understand the need for the drug, Addyi was billed as the “female Viagra.” Valeant had high hopes for Addyi; its international distribution – a key deal synergy – was expected to spur sales. The only problem is that there may not be much to sell.

Sources suggest that in the first few weeks of its launch, Addyi sold only 227 prescriptions. That is in stark contrast to Viagra, which generated over half a million prescriptions in its first month in 1998. Two impediments for Addyi may be: (i) doctors have to be certified to prescribe the drug, and (ii) the drug’s side effects.

The FDA requires that doctors get certified in order to ensure they can properly explain the risks. According to Bloomberg, only about 1 per cent of U.S. gynecologists, obstetricians and primary care physicians are certified. Secondly, the drug’s side effects include dizziness, fainting and falling blood pressure; they are exacerbated when patients also consume alcohol or hormonal contraceptives. Such side effects and their irritants could limit the universe of women willing to take Addyi.