Organon has inked a deal to acquire Dermavant Sciences Ltd., a Roivant company dedicated to developing and commercializing innovative therapeutics in immuno-dermatology, for up to $1.2 billion.
Under the terms, Organon, a Jersey City-based health care company focused on improving women’s health, will make an upfront payment of $175 million and a $75 million milestone payment upon regulatory approval, as well as up to $950 million for certain commercial milestones.
Dermavant owns the rights to Vtama cream globally, excluding China and out-licensed Japanese rights. This cream is a nonsteroidal once-daily topical treatment that works by activating aryl hydrocarbon receptors in the skin to reduce inflammation and normalize the skin barrier.
Organon will pay Dermavant shareholders tiered royalties on net sales.
The transaction is expected to be modestly dilutive to Organon’s adjusted earnings before interest, taxes, depreciation and amortization in 2025, turning accretive in 2026.
The acquisition will also extend Organon’s dermatology capabilities to the U.S.
“We look forward to combining Dermavant’s strong dermatology commercial and field medical organization in the U.S., with Organon’s market access capabilities, regulatory expertise and worldwide commercial reach. This will allow us to bring VTAMA cream, a patient-focused innovation in dermatology, providing an effective, well-tolerated, nonsteroidal treatment option to the millions of people living with plaque psoriasis and potentially atopic dermatitis,” Kevin Ali, Organon CEO, said. “The acquisition will deliver on Organon’s objective of improving the health of women throughout their life stages by investing in treatments for conditions that affect women differently.”
