Nov 6 (Reuters) - Valeant Pharmaceuticals International Inc
* Valeant agrees to sell Sprout Pharmaceuticals subsidiary to former shareholders of Sprout Pharmaceuticals
* Valeant - In connection with sale, Valeant will provide a $25 million loan to fund initial operating expenses
* Valeant- In connection with sale completion, co to be released from ongoing obligations of original deal to split future profits with former shareholders
* Valeant - Existing litigation against company brought on behalf of former shareholders of sprout will be dismissed with prejudice
* Valeant- In relation to sale completion, "existing litigation against co brought on behalf of former sprout shareholders will be dismissed with prejudice"
* Valeant - Affiliate has entered into an agreement to divest Sprout Pharmaceuticals subsidiary
* Valeant - Agreement to divest is in exchange for a 6% royalty on global sales of Addyi(flibanserin) beginning 18 months from signing of sale agreement Source text for Eikon: Further company coverage: