Roivant Sciences Offloads Psoriasis Medicine Maker To Organon For Up To $1.2B
Portfolio Pulse from Vandana Singh
Organon & Co (OGN) is acquiring Roivant Sciences' (ROIV) Dermavant Sciences for up to $1.2 billion. Dermavant's Vtama cream, approved for psoriasis, is under FDA review for atopic dermatitis. The deal includes milestone payments and royalties, with Organon expecting initial dilution to EBITDA, turning accretive in 2026.
September 18, 2024 | 7:20 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Organon is acquiring Dermavant Sciences from Roivant for up to $1.2 billion. The acquisition includes Vtama cream, which is approved for psoriasis and under FDA review for atopic dermatitis. The deal is expected to be initially dilutive to EBITDA, turning accretive in 2026.
The acquisition of Dermavant and its product Vtama cream is a strategic move for Organon, potentially expanding its product portfolio in dermatology. The deal's structure with milestone payments and royalties suggests long-term growth potential. Despite initial EBITDA dilution, the transaction is expected to be accretive by 2026, indicating positive long-term financial impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Roivant Sciences is selling Dermavant Sciences to Organon for up to $1.2 billion. This includes an upfront payment, milestone payments, and royalties. The sale allows Roivant to monetize its investment in Dermavant and focus on other areas.
The sale of Dermavant allows Roivant to realize significant value from its investment, with an upfront payment and potential future earnings through milestone payments and royalties. This transaction provides Roivant with capital to potentially reinvest in other strategic areas, indicating a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100