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American pharmaceutical company Organon has completed the acquisition of Dermavant Sciences, a Roivant-owned company focused on the development and supply of innovative immuno-dermatology therapeutic agents for the management of chronic skin conditions.

The agreement includes Organon rights to Dermavant’s new innovative cream, VTAMA 1%.

The cream, whose active ingredient is tapinarof, gained U.S. Food and Drug Administration (FDA) approval back in 2022 and is a non-steroidal topical treatment used in management of mild, moderate, and severe plaque psoriasis in adults.

It acts by activating aryl hydrocarbon receptors in the skin, thereby reducing inflammation and normalizing the skin barrier.

Organon’s CEO, Kevin Ali, expressed excitement in bringing VTAMA into the market and its use in treatment of psoriasis and prospectively, atopic dermatitis.

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“The future of dermatology depends on innovative treatments like VTAMA, and Organon’s acquisition of Dermavant allows us to further expand our existing portfolio of established brands and biosimilar dermatology treatments,” added Kevin.

More details about the deal

The deal, which could touch $1.2 billion, includes an upfront payment of $175 million, up to $950 million in payments for reaching specific commercial goals, and a $75 million milestone payment following regulatory approval for atopic dermatitis.

Organon will also distribute tiers of royalties on net sales to Dermavant stockholders.

“This deal represents a true win-win outcome for Organon and Roivant in our mutual goal to address patient needs and is emblematic of Roivant’s ability to form non-traditional, value-enhancing collaborations on important medicines. We believe that Organon’s strong global commercial footprint will maximize the impact of VTAMA for patients globally, and we are excited to continue to share meaningfully in the success of VTAMA along the way,” stated Mayukh Sukhatme, MD, President, Roivant.

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