Commenting on Organon’s (OGN) acquisition of Dermavant from Roivant Sciences (ROIV), Evercore ISI analyst Umer Raffat calls the deal “another master stroke by Roivant team.” From Organon perspective, while the firm’s first reaction was “not good at all,” after running the math, Evercore says “it’s not as bad” as it was expecting. It’s “not an amazing IRR – but Organon likely won’t lose money on this,” it adds. Overall, the firm sees this as “about a mid-high single digit IRR for Organon (but tiny on EPS accretion),” which is not great but also not the negative deal Evercore was anticipating when it started modeling it out. The firm has an Outperform rating on Organon.
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