Organon has agreed to buy medical dermatology company Dermavant Sciences, a majority-owned unit of Roivant Sciences, in a deal worth up to $1.2 billion. Organon on Wednesday said it will make an up-front payment of $175 million, along with up to $1.025 billion in milestone payments.

Organon (OGN) on Wednesday agreed to acquire Roivant Sciences' (ROIV) immuno-dermatology subsidiary, Dermavant, in a deal worth up to $1.2 billion. The healthcare company will pay $175 million upfront and up to $950 million for the achievement of certain commercial milestones.