Organon agreed to acquire Roivant Sciences subsidiary Dermavant Sciences Inc. on 18 September for $175m up front, which will add an approved psoriasis drug, Vtama (tapinarof cream 1%), to Organon’s portfolio while the company awaits an approval decision on a larger, second indication of atopic dermatitis. Analysts applauded the transaction, which has a total potential deal value of $1.2bn plus royalties, as a strategic maneuver for Roivant, although it may provide modest long-term value for Organon.
Key Takeaways
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Organon will add branded dermatology product Vtama in a $175m upfront agreement to acquire Dermavant from parent firm Roivant.
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Analysts like the deal for Roivant, saying it clears out a disappointing product and related expenses, putting more focus on Immunovant’s pipeline
Women’s health- and biosimilar-focused Organon said adding Vtama, which obtained US Food and Drug Administration approval as a non-steroidal topical therapy for plaque psoriasis in May 2022, will bolster its dermatology capabilities in the US, partially by bringing the Dermavant commercial and field organization in-house
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