Dermavant Sciences, a subsidiary of Roivant Sciences, has agreed to purchase the rights to tapinarof, an investigational therapeutic aryl hydrocarbon receptor modulating agent intended for the treatment of psoriasis and atopic dermatitis and back-up programmes, from United Kingdom-based GSK, it was reported on Friday.

The deal is valued at GBP250m. It includes an initial payment of GBP150m and potential future milestone payment of GBP100m. It is likely to be completed during the second half of 2018, subject to necessary approvals, anti-trust and regulatory clearances.

Under the deal, GSK, Roivant and Dermavant will sign a contract for supply of the investigational medicine for the phase III programme and commercial supply. At closing of the deal, Dermavant will acquire all global rights to tapinarof, except in China. Dermavant will acquire global rights to the preclinical topical back-up programme to tapinarof and will assume responsibility for all development milestones owed to third parties.

(EUR1=GBP0.88)