Dermavant Sciences acquires rights to tapinarof from GSK. This is an investigational therapeutic aryl hydrocarbon receptor modulating agent for the treatment of psoriasis and atopic dermatitis.

GSK has announced that Dermavant Sciences, a subsidiary of Roivant Sciences, has agreed to purchase the rights to tapinarof, an investigational therapeutic (TAMA)aryl hydrocarbon receptor modulating agent for the treatment of psoriasis and atopic dermatitis and back-up programmes for a total consideration of �250 million, including an initial payment of �150 million and a potential future milestone payment of �100 million. The transaction is anticipated to complete during the second half of 2018, subject to necessary approvals, anti-trust 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 programme 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 programme to tapinarof and will assume responsibility for all development milestones owed to third parties.

Comment:Tapinarof has been tested as a topical treatment in more than 800 patients in phase 1 and II. In a dose-ranging study involving 227 adults with plaque psoriasis, tapinarof brought about "clinically meaningful, dose-dependent improvements." After 12 weeks, about half of the patients receiving a once-daily dose of either tapinarof 1% or 0.5% had a 75% or greater improvement in a psoriasis severity score. Only 5% of placebo patients achieved this level.