GlaxoSmithKline (GSK) has agreed to sell the rights to its investigational drug, tapinarof, to Dermavant Sciences, the dermatology subsidiary of Roivant Sciences, a Basel, Switzerland globally headquartered biopharmaceutical company, for £250 million ($330 million). Tapinarof is an investigational therapeutic aryl hydrocarbon receptor modulating agent for treating psoriasis and atopic dermatitis. The deal includes rights to tapinarof and global rights to the preclinical topical back-up program to tapinarof.

Dermavant Sciences is purchasing tapinarof for a total consideration of £250 million ($330 million), including an initial payment of £150 million ($198 million) and a potential future milestone payment of £100 million ($132 million).

The transaction is anticipated to be completed during the second half of 2018, subject to necessary approvals, antitrust, and regulatory clearances. As part of the transaction, GSK, Roivant, and Dermavant will enter into agreements for supply of the investigational medicine for the Phase III program and commercial supply. At closing of the transaction, Dermavant will acquire all global rights to tapinarof, except in China. Dermavant will acquire global rights to the preclinical topical back-up program to tapinarof and will assume responsibility for all development milestones owed to third parties.

“We have taken a strategic decision to divest or partner medicines in our R&D portfolio that are a better fit for other companies allowing us to concentrate our resources on other promising assets,” said John Lepore, Senior Vice President, Research and Development Pipeline, GSK in a July 12, 2018 company statement.

Source: GlaxoSmithKline