Organon to Acquire Roivant's Dermavant for Up to $1.2 Billion, Including VTAMA Cream

Sep 18, 2024, 01:15 PM

Organon has announced its acquisition of Dermavant, a subsidiary of Roivant Sciences, in a deal valued at up to $1.2 billion. The acquisition includes Dermavant's innovative dermatologic therapy, VTAMA (tapinarof) Cream 1%. Organon will pay $175 million upfront, with additional payments contingent on regulatory approval and sales milestones. Specifically, $75 million will be paid upon approval of VTAMA for atopic dermatitis, and up to $950 million will be paid based on sales milestones. Roivant's stock rose 2.2% pre-market following the announcement. The deal has received mixed reactions from analysts, with some expressing concerns about its impact on Organon, while others view it as positive for Roivant.