Organon, a global healthcare company focused on improving the health of women, has completed the acquisition of Dermavant Sciences from Roivant. Dermavant is a company dedicated to developing and commercialising innovative therapeutic solutions in immuno-dermatology.

The transaction includes the acquisition of VTAMA (tapinarof) cream, a novel nonbiologic, non-steroidal topical therapy approved by the U.S. Food and Drug Administration (FDA) for treatment of mild, moderate, and severe plaque psoriasis in adults. Organon’s acquisition of Dermavant will enable the company to further expand its existing portfolio of brands and biosimilar dermatology treatments. Dermavant is a company focused on the development and commercialisation of therapeutic solutions in immuno-dermatology. Under the terms of the agreement, Organon has agreed to acquire Dermavant for aggregate consideration of up to approximately $1.2 billion, with an upfront payment of $175 million and a $75 million milestone payment upon regulatory approval in AD, as well as payments of up to $950 million for the achievements of certain commercial milestones. In addition, Organon 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.