Organon (NYSE: OGN), a global healthcare company dedicated to improving women’s health, has announced a definitive agreement to acquire Dermavant Sciences, a subsidiary of Roivant (NASDAQ: ROIV). Dermavant specializes in developing innovative therapies for immuno-dermatology. The acquisition includes VTAMA® (tapinarof) Cream, 1%, a novel, FDA-approved topical treatment for mild to severe plaque psoriasis in adults. Approved in May 2022, VTAMA Cream is a steroid-free, once-daily medication applied to affected areas without safety warnings or restrictions regarding location, duration, or treatment area. Additionally, the FDA is reviewing a supplemental New Drug Application (sNDA) for VTAMA Cream, which is being evaluated as a potential treatment for atopic dermatitis (AD) in adults and children aged 2 years and older. The Prescription Drug User Fee Act (PDUFA) action for this review is expected in Q4 2024.
Psoriasis is a chronic inflammatory skin condition affecting over 8 million adults in the U.S. and 125 million globally. Atopic dermatitis, another common inflammatory skin disease, impacts around 16.5 million adults and 9.6 million children in the U.S., with women disproportionately affected. Both conditions significantly affect patients’ quality of life.
Organon CEO Kevin Ali expressed enthusiasm about the acquisition, highlighting the synergy between Dermavant’s dermatology expertise in the U.S. and Organon’s global commercial capabilities. “By combining Dermavant’s strengths with Organon’s market access, regulatory expertise, and international reach, we aim to deliver a patient-focused innovation in dermatology. VTAMA Cream offers a non-steroidal, well-tolerated treatment option for those suffering from plaque psoriasis, and potentially for millions with atopic dermatitis,” said Ali. He also noted how this acquisition supports Organon’s mission to enhance women’s health by addressing conditions that disproportionately affect them.
Roivant CEO Matt Grein emphasized that the transaction demonstrates Roivant’s ability to forge mutually beneficial partnerships. “We believe Organon’s commercial scale will help maximize VTAMA’s global reach, benefiting patients worldwide,” Grein stated, highlighting the financial advantages tied to the future success of VTAMA Cream.
Dermavant CEO Todd Zavodnick described the acquisition as a significant growth opportunity. “By joining Organon, we are well-positioned to expand the impact of VTAMA Cream, which became the leading topical treatment for plaque psoriasis just two months after its launch, offering relief to over 275,000 patients,” Zavodnick remarked. He sees the partnership as a chance to continue Dermavant’s vision of transforming dermatology care on a global scale.
Matthew Walsh, Organon’s CFO, highlighted the transaction’s financial structure, which focuses on success-based milestones and royalties. “This aligns with our commitment to prudent capital allocation as we strategically invest in growth assets while managing debt,” Walsh concluded.
