Galderma is the world’s second largest player in the $9 billion ($16.2b) market for neuromodulator injections and fillers after US firm AbbVie.
The former are toxins that relax muscles in the face to reduce wrinkles, and the latter, gel-like injections used to make skin look plumper.
Weight loss drugs such as Ozempic are also a significant driver of sales, Ørnskov said, with many dermatologists reporting that patients are seeking out treatment for so-called “Ozempic face” in regions where there is a higher penetration of drugs using GLP-1s such as the Middle East and North America.
“If they lose 8 to 10kg or more, they start showing facial sagging,” said Ørnskov. “There, people will need to use a filler.”
Galderma’s most popular filler for weight loss drug users is a product called Sculptra, which was initially developed for HIV patients who experienced rapid weight loss, he added.
At its initial public offering in March last year, Galderma raised approximately SFr2.3bn ($4.5b) at a price of SFr53 a share. Shares in the company have more than doubled to SFr108.50 a share.
Galderma’s net sales grew 9.2% to $3.2bn in the nine months to September 2024, driven by its two largest divisions, dermatological skincare — which includes everyday skincare brands like Cetaphil — and aesthetic injectables.
US sales, which make up 40% of the group total, grew 2.5% in the first three quarters, compared to 14.5% in the rest of the world as a result of subdued consumer demand in the market.
The company is hoping to boost US sales with the launch of its new product, Nemluvio, which treats atopic dermatitis, and recently received approval from the US Food and Drug Administration.
Approximately 7% of people in the US suffer from eczema, the company said.
Despite the US slowdown, Galderma said it was starting to close the gap with its key competitor in the injectables category, AbbVie, which invented the famous Botox brand and holds the leading market position in the category.
According to Jefferies analysts, AbbVie’s Botox and Galderma’s Dysport are the leading neuromodulators with Dysport used in 80% of US doctors’ practices compared to Botox’s 20%.
Galderma says Sculptra is now the second-largest filler brand in the US.
It has just launched a new filler specifically designed for people who want to look like they have better bone structure, for example men who want the appearance of a stronger jaw.
The Swiss group was formed in 2019 when Nestlé sold its skin health division to an investor consortium led by private equity firm EQT for $10b, after the food giant concluded that it did not fit alongside its chiefly nutrition-focused portfolio.
Nestlé previously ran the skincare unit as a joint venture with L’Oréal but took full control in 2014, in exchange for €2.6b ($4.78b) of its shares in the French cosmetics group.
In August L’Oréal reacquired a 10% stake in the company. Analysts said the move indicated a renewed interest in the aesthetics injectables category, which has far outperformed other consumer categories.
Written by: Madeleine Speed
© Financial Times
