Organon (OGN) said Wednesday it has agreed to acquire Roivant's (ROIV) Dermavant, including its flagship dermatological cream Vtama, for a total consideration of $1.2 billion.

Under the deal, Organon will pay $175 million upfront with $75 million as milestone payment after the US Food and Drug Administration approves Vtama's application for treatment of atopic dermatitis, followed by commercial milestone payments of up to $950 million. The companies expect the FDA to decide on its review in Q4.

The transaction is expected to close in Q4.

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