Organon to acquire Dermavant, Vtama cream in definitive agreement

Key takeaways:

• Organon is an independent global health care company dedicated to promoting women’s health.
• Organon will pay Dermavant up to $1.2 billion for the acquisition.

Organon and Dermavant have entered a definitive agreement in which Organon will acquire Dermavant, according to a press release.

Organon is an independent global health care company dedicated to promoting women’s health.

“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,” Kevin Ali, CEO of Organon, said in the release. “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.”

Included in the agreement is Dermavant’s novel, once-daily, steroid-free product, Vtama (tapinarof) cream 1%, which is indicated for the topical treatment of mild, moderate and severe plaque psoriasis in adults.

A supplemental new drug application for Vtama is also under review by the FDA for the potential treatment of atopic dermatitis in adults and children aged 2 years and older.

The aggregate consideration of the acquisition is approximately $2.1 billion. Under the terms of the agreement, Organon will pay Dermavant $175 million upfront as well as a $75 million milestone payment if Vtama is approved for AD. Additionally, Organon will pay up to $950 million for achievement of certain commercial milestones, as well as tiered royalties to Dermavant shareholders on net sales.

The companies plan to close the transaction in the fourth quarter of 2024.