Roivant is once again reaping the benefits of its bespoke business model. This time, it’s selling Dermavant to Organon for up to $1.2 billion.
Most of that money — $950 million — is available via commercial milestones, according to Wednesday’s announcement. Organon is paying $175 million upfront plus another $75 million if Dermavant’s skin cream Vtama snags FDA approval to treat atopic dermatitis, a decision that’s expected by the end of the year. It will also pay tiered royalties on sales to Dermavant shareholders.
“This is another example of Roivant’s ability to offer creative win-win collaborations,” Roivant CEO Matt Gline said in a statement.
Matthew WalshIn the same release, Organon CFO Matthew Walsh said the milestone-heavy deal structure is meant to reinforce the company’s “commitment to disciplined capital allocation.”
Vtama, which was first approved to treat plaque psoriasis in May 2022, brought in $18.4 million in sales in the first quarter, a 10% increase from the same period in 2023. Yet prescriptions have more than doubled, from nearly 200,000 as of August 2023 to over 430,000 by July.
An approval in atopic dermatitis would likely provide a significant jolt to revenue potential, with Gline saying that Roivant is “excited for Vtama cream to benefit from Organon’s commercial scale.” In January, Dermavant shared updated data that found more than 80% of patients treated across two studies had a greater than 75% improvement on a skin-clearing endpoint.
The deal marks the second acquisition of a Roivant property over the last year after it sold Telavant to Roche for $7.1 billion upfront in late 2023. Other subsidiaries like Priovant and its lead asset, brepocitinib, continue to progress. The company has brepocitinib in two Phase 3 studies for dermatomyositis and non-infectious uveitis, respectively, though recruitment in the NIU trial has yet to begin.