Organon To Buy Dermavant For Around $1.2 Bln

(RTTNews) - Roivant Sciences Ltd. (ROIV), developer and commercializer of immuno-dermatology therapeutics, announced on Wednesday that it has inked a deal with Organon & Co. (OGN), a firm focused on women's health, through which Organon will buy Roivant's Dermavant Sciences Ltd., a developer and commercializer of therapeutics in immuno-dermatology.

Under the terms, Organon will pay to total consideration of around $1.2 billion, with an upfront payment of $175 million and a $75 million milestone payment upon regulatory approval in AD, as well as up to $950 million for certain commercial milestones.

In addition, Organon will pay Dermavant shareholders tiered royalties on net sales.

The transaction is expected to be modestly dilutive to Organon's adjusted EBITDA in 2025, turning accretive in 2026.

The acquisition will also extend Organon's dermatology capabilities to the U.S.

Upon closing of the transaction in the fourth-quarter, Organon is anticipated to assume Dermavant liabilities of around $286 million reported by Roivant as of June 30.

Dermavant owns the rights to Vtama cream, 1%, globally excluding China and has out licensed Japan rights. This cream is a non-steroidal once-daily topical treatment that works by activating aryl hydrocarbon receptors in the skin to reduce inflammation and normalize the skin barrier.