Organon to Acquire VTAMA Maker Dermavant

Organon and Dermavant Sciences Ltd. announced that they have entered into a definitive agreement, under which Organon will acquire Dermavant, a Roivant company whose product VTAMA® (tapinarof) cream, 1%, for the topical treatment of mild, moderate, and severe plaque psoriasis in adults was approved by the U.S. Food and Drug Administration (FDA) in May 2022.

VTAMA cream is a once-daily, steroid-free, topical applied to affected areas with no safety label warnings or precautions and without restrictions on location and duration of use or body surface area. The FDA is 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 Prescription Drug User Fee Act (“PDUFA”) action expected in the fourth quarter of calendar year 2024.

“We look forward to combining Dermavant’s strong dermatology commercial and field medical organization in the U.S., with Organon’s market access capabilities, regulatory expertise, and worldwide commercial reach. This will allow us to bring VTAMA cream, a patient-focused innovation in dermatology, providing an effective, well-tolerated, non-steroidal treatment option to the millions of people living with plaque psoriasis and potentially atopic dermatitis,” Organon Chief Executive Officer Kevin Ali said in a press release. “The acquisition will deliver on Organon’s objective of improving the health of women throughout their life stages by investing in treatments for conditions that affect women differently.”

Matt Gline, Chief Executive Officer of Roivant, said it was another example of his company’s ability to offer creative win-win collaborations.

“We are able to meet Organon’s structural objectives and to create a transaction that is very attractive to both Roivant and Dermavant stakeholders, while still preserving meaningful economics tied to the potential future success of VTAMA,” Gline said. “Additionally, we are excited for VTAMA cream to benefit from Organon’s commercial scale. We believe they have the capabilities and reach to ensure patients globally can access this important medicine.”

Todd Zavodnick, Chief Executive Officer of Dermavant, called it an unparalleled opportunity for continued growth and innovation for Dermavant, preserving the company’s values and vision and allowing them to thrive in the new structure at Organon.

“We set out to revolutionize the standard of care in dermatology, and we delivered—becoming the No. 1 branded topical for plaque psoriasis within just two months after launching VTAMA cream, and providing over 275,000 patients with the relief they desperately needed,” Zavodnick said. “I am certain that this merger will provide us the scope and global scale to unleash the potential of VTAMA cream.”