Roivant Sciences continues its dealmaking hot streak, announcing Wednesday that it would sell one of its subsidiaries to pharma company Organon in a deal worth $1.2 billion.
Organon is buying Roivant subsidiary Dermavant and its topical treatment Vtama. The drug is currently approved to treat various forms of the skin condition plaque psoriasis. But analysts and Organon see the real potential in Dermavant’s standing application with the Food and Drug Administration to expand the drug’s label to include atopic dermatitis, another chronic skin condition that affects around 25 million children and adults in the U.S.
Under the terms of the deal, Organon will pay $175 million upfront to acquire Dermavant, plus another $75 million if Vtama’s atopic dermatitis label expansion is approved. That regulatory decision is expected by the end of the year.
