HQ Team
September 18, 2024: US-based pharmaceutical company Organon & Co., will acquire Riovant Sciences Ltd’s arm — Dermavant Sciences Ltd., specialising in immuno-dermatology — for $1.2 billion.
Organon will get an upfront payment of $175 million and a $75 million milestone payment, as well as payments of up to $950 million for the achievement of certain commercial milestones, according to a statement.
The transaction is expected to close in the fourth quarter of 2024 and the acquisition will extend Organon’s dermatology capabilities to the US, according to the statement.
The acquisition gives Organon access to top-selling Dermavant’s Vtama (tapinarof) cream. It is meant for the topical treatment of mild, moderate, and severe plaque psoriasis in adults, and was approved by the US Food and Drug Administration in May 2022.
Atopic dermatitis
The FDA is also reviewing a Supplemental New Drug Application for Vtama cream as a potential treatment for atopic dermatitis in adults and children two years of age and older. A decision is expected in the fourth quarter of the calendar year 2024.
Psoriasis is a common chronic inflammatory skin disease affecting more than eight million Americans 20 years of age or older and 125 million people worldwide.
Atopic dermatitis is one of the most common inflammatory skin conditions impacting approximately 16.5 million adults and more than 9.6 million children in the US.
Psoriasis presents a significant impact on quality of life 5 and atopic dermatitis is associated with a higher disease burden for women compared to men.
The acquisition would strengthen 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, said Kevin Ali, Organon Chief Executive Officer.
‘Health of women’
“This will allow us to bring Vtama cream, a patient-focused innovation in dermatology, providing an effective, well-tolerated, non-steroidal treatment option to the millions of people living with plaque psoriasis and potentially atopic dermatitis.”
“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,” he said.
Organon, a spin-off from Merck & Co., will pay Dermavant shareholders tiered royalties on net sales. Dermavant owns the rights to Vtama cream globally excluding China and has out-licensed Japan rights.
“We are excited for Vtama cream to benefit from Organon’s commercial scale. We believe they have the capabilities and reach to ensure patients globally can access this important medicine,” said Matt Gline, Chief Executive Officer of Roivant.
Vivek Ramaswamy, a former Republican leader, founded Roivant in 2014. Ramaswamy stepped down as the CEO in January 2021.
