Cosette Pharmaceuticals has acquired Vyleesi, the FDA-approved treatment for Hypoactive Sexual Desire Disorder (HSDD) in premenopausal women, from Palatin Technologies. The transaction, valued at $12 million with an additional $159 million in contingent sales-based milestones, reflects Cosette’s strategic expansion in women’s health despite the drug’s struggling performance in the market.
Vyleesi, once anticipated to be a breakthrough akin to “female Viagra,” has underperformed since its market debut. Palatin Technologies reported $12.5 million in sales for the fiscal year, a modest improvement from the $5.8 million in the previous year but far below initial forecasts.
“This acquisition highlights Cosette’s continued focus on improving women’s health, and our dedication to increasing awareness and education,” stated Apurva Saraf, President and CEO of Cosette. “Our strong commercial capabilities, coupled with our commitment to partnering with the women’s health community will drive improved access to Vyleesi for the millions of women who suffer from HSDD.”
HSDD is the most common female sexual dysfunction condition in the U.S., impacting approximately 6 million premenopausal women. HSDD is defined as a persistent or recurrent absence of sexual fantasies and desire for sexual activity, which causes marked personal distress or interpersonal difficulties.
“HSDD has been a recognized medical condition for over 40 years, but is widely underdiagnosed and undertreated,” said Rachel Rubin, M.D., Urologist and Sexual Medicine Specialist. “Vyleesi is a welcome tool in our biopsychosocial toolbox. It is a novel and effective treatment option for HSDD that can be self-administered as needed in anticipation of sexual activity. Women with HSDD should not ignore or justify their symptoms and should talk to their healthcare provider about reclaiming their sexual desire.”
Despite the challenges, Cosette aims to leverage its commercial infrastructure and community partnerships to improve Vyleesi accessibility for the estimated 6 million premenopausal women affected by HSDD in the U.S. The acquisition includes 5 Orange Book listed patents, ensuring protection until 2041 and continued availability to patients and healthcare providers throughout the transition.
Cosette’s acquisition of Vyleesi is a part of the company’s strategic initiatives to expand its portfolio, and bolster the company’s capabilities in delivering healthcare solutions, particularly in addressing the unmet needs in women’s sexual health. Cosette is backed by Avista Capital Partners, a healthcare-focused private equity firm.
