Dermavant Sciences, a biopharmaceutical company specializing in immunodermatology therapy, recently secured $200 million in funding. The funding comprises a $160 million revenue interest purchase and sale agreement for its investigational product, tapinarof, with participants including Marathon Asset Management, NovaQuest Capital Management, and a third institutional investor from Boston. In addition, the company obtained a $40 million senior secured credit facility from a Boston-based firm.
The proceeds from the funding will be used to fulfill specific milestone obligations that arise upon the approval and commercialization of tapinarof for treating psoriasis in the United States. The funds will also support general corporate purposes.
Dermavant, a subsidiary of Roivant Sciences and led by Chief Executive Officer Todd Zavodnick, is dedicated to developing and commercializing innovative therapeutics in immuno-dermatology. Their medical dermatology pipeline includes late-stage and earlier-stage product candidates for addressing immuno-dermatological conditions such as psoriasis, atopic dermatitis, vitiligo, primary focal hyperhidrosis, and acne.
Tapinarof, a novel therapeutic aryl hydrocarbon receptor modulating agent, is being developed as a once-daily, steroid-free, and cosmetically elegant topical cream for the treatment of plaque psoriasis and atopic dermatitis. These conditions affect approximately 8 million and 26 million people in the United States, respectively. Dermavant has reported positive Phase 3 results for tapinarof cream in adult patients with plaque psoriasis.