JPMorgan keeps an Overweight rating on Roivant Sciences (ROIV) after the company announced that Organon (OGN) will acquire Dermavant, which is Roivant ‘s subsidiary responsible for commercializing Vtama. Roivant will receive an upfront of $175M, a $75M milestone on FDA approval for atopic dermatitis expansion and up to $950M commercial milestones, the analyst tells investors in a research note. The firm says the transaction also removes the company’s debt liabilities. JPMorgan says the move to divest Dermavant “was a great decision.”
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Read More on ROIV:
- Roivant Sciences Subsidiary Acquired for $1.2 Billion
- Organon to acquire Dermavant from Roivant Sciences for $1.2B
- Organon to Acquire Dermavant including its Innovative Dermatologic Therapy, VTAMA® (tapinarof) Cream, 1%
- Organon to acquire Dermavant for consideration up to $1.2B
- Roivant Sciences price target raised to $12.50 from $12 at BofA