Investors in Sprout, the female libido pill makerbought by Valeant Pharmaceuticals International Inc. for $1 billionlast year, said Valeant has failed to successfully commercializethe treatment by setting the price too high and neglecting tomarket it, putting the drugmaker at risk of violating the mergeragreement.

The group, representing all Sprout shareholders at the time ofthe acquisition, sent Valeant a letter on March 14 requestingmaterials showing that the drugmaker can fulfill its obligationsunder the deal going forward. Among the documents, the investorsare seeking evidence that Valeant plans to spend $200 million formarketing and research and development for 2016 and half of 2017,as part of the agreement. They also ask for assurance that Valeantwill keep a sales force of 150 to distribute the drug, calledAddyi, which has posted disappointing sales since its introductionfive months ago.

“Valeant predatorily priced Addyi at $800 a month even thoughSprout had established a price point of approximately $400 a monthfor the drug based on market research,” the investor group said inthe letter. “As a result of this predatory pricing, insurancecompanies refused to cover the drug, which has led to the drug notbeing affordable for millions of women.”

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