It has been a roller-coaster day in the marketplace for the two firms behind Vyleesi, an injection that acquired Food and Drug Administration approval last week to deal with low sex drive in women.
Shares of AMAG Pharmaceuticals (ticker: AMAG), which can promote the drug, had been down 5.1% midday Monday at $8.51. After closing Friday at $8.97, the inventory spiked briefly to $9.50 on Monday morning before beginning its slide.
In the meantime, shares of Palatin Technologies (PTN) had been not too long ago down 10.5%. Palatin developed the drug and is about to obtain royalty funds on its gross sales, together with a $60 million bonus based mostly on the drug’s approval.
The drug’s approval acquired vital news coverage, and much of it centered on the controversy that surrounded the other drug authorized for low sex drive in women, Addyi, which has struggled on the market and drawn criticism for its potential adverse effects.
The approval of Addyi, marketed by Sprout Pharmaceuticals, drew significant attention in 2015 and led to the $1 billion acquisition of Sprout by Valeant Pharmaceuticals, now Bausch Health(BHC).
But thorny questions about whether low sex drive needs to be handled with medication arose, and scrutiny of Valeant’s drug-pricing practices additionally clouded the Addyi’s debut. Valeant dismissed the sales staff liable for promoting Addyi in 2016. Sprout split back off from Valeant in 2017, and relaunched Addyi by itself in 2018, slashing the drug’s value in half from the $800 price ticket set by Valeant. But the drug’s gross sales have did not live up to the hype.