Organon announced on September 18, 2024, its agreement to acquire Dermavant Sciences Ltd., a Roivant company, for aggregate consideration of up to approximately $1.2 billion. The acquisition includes an upfront payment of $175 million and a $75 million milestone payment upon regulatory approval in atopic dermatitis, along with up to $950 million for commercial milestones.
The acquisition brings VTAMA (tapinarof) cream, 1%, a novel, non-steroidal topical therapy, into Organon's portfolio. VTAMA cream is approved by the U.S. Food and Drug Administration (FDA) for the topical treatment of mild, moderate, and severe plaque psoriasis in adults.
The FDA is also reviewing a Supplemental New Drug Application (sNDA) for VTAMA cream as a potential treatment for atopic dermatitis (AD) in adults and children two years of age and older, with a Prescription Drug User Fee Act (PDUFA) action expected in the fourth quarter of calendar year 2024. This acquisition is expected to be modestly dilutive to Adjusted EBITDA in 2025, turning accretive in 2026, and will elevate Organon's net leverage above 4.0x.
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