BASEL, Switzerland - Organon (NYSE: OGN), a global healthcare company, has announced the completion of its acquisition of Dermavant Sciences Ltd., a dermatological company, from Roivant (NASDAQ: ROIV). The transaction, which was finalized today, enhances Organon's portfolio with the addition of VTAMA® (tapinarof) cream, 1%, an FDA-approved topical treatment for plaque psoriasis.
VTAMA cream, a nonbiologic and non-steroidal therapy, is currently under FDA review for the potential treatment of atopic dermatitis in adults and children aged two and above. The Prescription Drug User Fee Act (PDUFA) action is expected in the fourth quarter of 2024. Plaque psoriasis and atopic dermatitis, also known as eczema, are chronic skin conditions that affect millions worldwide.
Organon's CEO, Kevin Ali, emphasized the importance of innovative treatments like VTAMA for dermatology, aiming to provide a new therapeutic option for patients suffering from chronic skin conditions. The acquisition aligns with Organon's mission to improve women's health throughout their lives by expanding its established brands and biosimilar dermatology treatments.
Roivant's President and Chief Investment Officer, Mayukh Sukhatme, MD, expressed that the deal is beneficial for both companies, highlighting Roivant's role in forming value-enhancing collaborations. He anticipates that Organon's global commercial footprint will maximize VTAMA's impact for patients.
VTAMA cream's safety and efficacy have been evaluated in clinical trials, and it has been approved without safety label warnings or precautions, offering unrestricted use in terms of body surface area and duration.
Organon, headquartered in Jersey City, New Jersey, operates globally with a mission focused on women's health, biosimilars, and established medicines. The company employs approximately 10,000 people and maintains a significant global reach and commercial capabilities.
This news article is based on a press release statement.
In other recent news, Roivant Sciences (NASDAQ:ROIV) has been the focus of multiple analyst firms. Leerink Partners maintained an Outperform rating, citing the company's executive incentive compensation structure as a potential driver for stock appreciation. JPMorgan (NYSE:JPM) also maintained an Overweight rating, expressing confidence in the company's prospects, particularly the potential of mosliciguat, a treatment for pulmonary hypertension in interstitial lung disease.
Roivant has seen significant advancements in its financial standings and drug portfolio. The company recently sold its Dermavant subsidiary to OGN for an estimated $1.2 billion, a deal expected to provide Roivant with approximately $500 million in the near term. This allows Roivant to focus more on its late-stage drug candidates, including IMVT-1402, brepocitinib, and mosliciguat.
Goldman Sachs (NYSE:GS) maintained its Buy rating following the Dermavant deal, while H.C. Wainwright maintained a Buy rating based on a valuation model projecting a 6x multiple on the anticipated risk-adjusted revenues of $4.2 billion for Roivant by 2035. Meanwhile, TD Cowen maintained a Buy rating following the announcement of a significant licensing agreement with Organon.
Roivant's clinical development is bustling with activity, with multiple late-stage clinical studies expected to release results within the next 12 months. This includes Phase 3 data for batoclimab in myasthenia gravis by FY24, Phase 2b results in CIDP by FY24, and Phase 3 outcomes from the study of brepocitinib in dermatomyositis during the second half of 2025. These are among the recent developments for Roivant Sciences.
InvestingPro Insights
As Roivant (NASDAQ: ROIV) completes the sale of Dermavant Sciences to Organon, investors may be interested in the financial implications for Roivant. According to InvestingPro data, Roivant's market capitalization stands at $8.82 billion, reflecting the market's valuation of the company post-transaction.
InvestingPro Tips highlight that Roivant holds more cash than debt on its balance sheet, which could be further bolstered by the proceeds from this sale. This strong liquidity position is underscored by the fact that Roivant's liquid assets exceed its short-term obligations, providing financial flexibility for future strategic moves or investments.
The company's revenue growth is noteworthy, with a 101.44% increase over the last twelve months as of Q1 2025. This robust growth trajectory aligns with Roivant's strategy of forming value-enhancing collaborations, as mentioned by President and Chief Investment Officer Mayukh Sukhatme in the context of the Dermavant sale.
While Roivant has demonstrated strong top-line growth, it's important to note that analysts do not anticipate the company to be profitable this year, according to another InvestingPro Tip. This suggests that Roivant may be prioritizing growth and strategic positioning over immediate profitability.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Roivant, providing a deeper understanding of the company's financial health and market position.
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