Sprout Pharmaceuticals, the pharma company that develops female libido medication called Addyi (flibanserin) has just raised $20 million in funding.
Cindy Eckert, the CEO of Sprout Pharmaceutical, said that Addyi has received some good news from the Food and Drug Administration (FDA). In August, the FDA ordered a warning label change to reflect the new data over the objection of Sprout Pharmaceuticals.
The agency said that doctors can now tell patients to stop drinking alcohol a couple of hours before taking Addyi rather than telling them to completely avoid it before taking the dose. The FDA also said that women who have libido issues will get a prescription for the drug through any certified medical provider in the United States.
Eckert said, “I spent $10 million just to do additional scientific work on Addyi and alcohol interaction. On the basis of those findings, the FDA has ruled they will lift the alcohol contraindication.”
Eckert has reduced the price of Addyi to $400 from $800 for a monthly supply. Regardless of having insurance, the first eight-week supply of Addyi is available at no cost. However, subsequent refills may cost around $99 a month without insurance and $25 a month with insurance. However, Eckert did not disclose Addyi’s sales figures.
Eckert said she has decided to raise at least $20 million in venture funding to expand the drug’s digital or online presence and increase the sales.
In 2017, she said, “For male investors, the quick reaction was social discomfort, and they would cope by joking: ‘Isn’t jewelry female Viagra.’ I knew I wasn’t going to get classical funding, so I went out and built an incredible network of high-net-worth individuals and angels who bet on me early.” It seems Eckert has been doing the same things this time. Upon asking whether she has any plans to increasing the business, raising capital, or selling Sprout again, Eckert said, “Right now, I’m squarely focused on getting it right for women, but it’s not out of the question.”
