Organon has completed the acquisition of Dermavant Sciences, a subsidiary of Roivant, expanding its dermatology portfolio.

With the deal's closure, Organon has added Dermavant’s VTAMA (tapinarof) cream 1%, a US Food and Drug Administration (FDA)-approved nonbiologic, non-steroidal topical treatment, to its portfolio.

VTAMA cream 1% is indicated for use in adults with mild, moderate, or severe plaque psoriasis.

The US regulator is also reviewing a supplemental new drug application (sNDA) for VTAMA cream as a potential treatment for atopic dermatitis (AD) in adults and children aged two years and older.

A decision on the approval for this indication is expected by the fourth quarter of 2024.

As per the acquisition deal signed in September 2024, Dermavant is eligible to receive up to $1.2bn from Organon. The sum includes an upfront payment of $175m and a $75m in milestone payment upon regulatory approval for the Dermavant asset.

Organon will also make additional payments of up to $950m on meeting commercial milestones, as well as tiered royalties on net product sales to Dermavant shareholders.

Organon CEO Kevin Ali stated: “The future of dermatology depends on innovative treatments like VTAMA, and Organon’s acquisition of Dermavant allows us to further expand our existing portfolio of established brands and biosimilar dermatology treatments.

“We are excited to bring this nonbiologic non-steroidal topical option to the millions of patients suffering from a chronic skin condition like plaque psoriasis and, potentially in the future, atopic dermatitis.”

The rights to VTAMA cream are owned by Dermavant globally, excluding China, with Japan's rights already out-licensed.

Organon will also assume Dermavant liabilities, valued at approximately $286m as reported by Roivant as of 30 June 2024, subject to fair value accounting adjustments.

Legal and financial advisories for the transaction were provided by Freshfields Bruckhaus Deringer and Goldman Sachs & Co for Roivant and Covington & Burling for Organon.