Organon Inks Deal to Acquire Dermavant, Bolstering Dermatology Portfolio with Vtama Cream

US healthcare company Organon (NYSE: OGN) has announced a definitive agreement to acquire Dermavant, a Roivant (NASDAQ: ROIV) subsidiary focused on dermatological treatments. The acquisition is primarily driven by Dermavant’s Vtama (tapinarof) cream, a 1% topical formulation approved for plaque psoriasis and currently under regulatory review for atopic dermatitis (AD). The deal underscores Organon’s strategic expansion into the dermatology space.

The transaction is valued at a potential USD 1.2 billion, with an initial payment of USD 175 million and a further USD 75 million contingent upon AD approval. Organon has also committed to paying up to USD 950 million in commercial milestones and royalties on net sales to Dermavant shareholders. The agreement grants Organon global rights to Vtama, excluding China and Japan, where the compound was originally discovered by Thederma and later licensed to Dermavant through an undisclosed agreement.

Vtama, a non-steroidal, once-daily cream, works by activating aryl hydrocarbon receptors in the skin, thereby reducing inflammation and normalizing the skin barrier. The product received its first US FDA approval in 2022 for the treatment of mild, moderate, and severe plaque psoriasis in adults, marking a significant advancement in topical treatments for the condition. – Flcube.com

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