By Jonathan Davies

The maker of a so-called 'female Viagra' has accepted a $1 billion (£640m) takeover offer, just one day after the product received regulatory approval.

Sprout Pharmaceuticals accepted the offer from Valeant Pharmaceuticals. The deal is still subject to regulator approval, but could be completed by the end of September. Valeant will pay $500m when the takeover is completed and another $500m during the first three months of next year.

Sprout Pharmaceuticals just yesterday (Wednesday) received regulator approval for Flibanserin, also known as Addyi - a product dubbed the 'female viagra'. It aims to help women regain their libido by increasing levels of certain chemicals in the brain.

Previous version were rejected on the grounds that it lacked effectiveness and caused side effects like sickness, dizziness and fainting.

"This partnership allows us the capacity to now ensure broader, more affordable access to all the women who have been waiting for this treatment," said Sprout's chief executive Cindy Whitehead.