Valeant Pharmaceuticals International Inc. agreed to pay about $1 billion in cash for Sprout Pharmaceuticals Inc., the U.S. drugmaker that this week received approval to sell a pill for low libido in women.

Valeant will give closely held Sprout a share of future profits if certain milestones are achieved, according to a statement on Thursday. The companies declined to disclose how the milestone payments would be structured.

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