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Testing: A high-growth dermatology disruptor at the height of innovation

August 2024

Updated: Mar 04, 2025

Executive Summary

A high-growth dermatology disruptor at the height of innovation

Galderma are a leader in the global dermatology market. They have a strong product suite developed from their scientific heritage focusing in high-growth key areas of (i) injectables and (ii) therapeutic dermatology. Their suite of innovative products includes the recently FDA approved Nemolizumab aka ‘nemo’, which markedly improves skin lesions and itch resulting from patients with a moderate to severe conditions including prurigo nodularis (a potentially debilitating concern).
H124 Financial Results

Investment Thesis

Overview of buy and sell case of the business.

Why Invest?

Key pieces of information about the business that you need to know about.

High-growth market

According to Dataintelo, the global dermatology market size was USD 1.7 Billion in 2023 and is likely to reach USD 3.1 Billion by 2032, expanding at a CAGR of 6.9% during 2024–2032. Galderma, as a leading innovator in the dermatology space, is a direct beneficiary of the HSD growth rate in the sector. There are multiple drivers of this high-growth market, including the ageing population increasing demand for aesthetically-enhancing products and an increase in income amongst the middle-class purchasing the premium products that Galderma offers.

Strong revenue growth

1H24 results reported revenue growth of c11% YoY; undeniably impressive and to be further supported by their strong product pipeline including the recently FDA-approved 'Nemo' product that is to be launched in 2025. With 'Nemo' being the first approved product of its kind (see FAQ's for further details) and the end-demand being in excess of 200K patients, they have a client-base ready to support their growth story.

Low leverage ratio

The have a low leverage ratio of 2.6x (as of June'24) and expect it to reach the lower end of previously communicated 2.25-2.50x range by year-end.

Catalysts

The key events that could drive investment opportunities and shift markets.

Near term
Product developments: End of December 2024: expect FDA approval of a product for eczma
Medium term
Inclusion in further international indices
Long term
Further product launches

Follow the Experts

Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.

Dr. Zein Obagi profile

Dr. Zein Obagi

Dermatology

52,000 audience

Expert Insights

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Expert insight
LinkedIn
Dr Harold Lancer profile

Dr Harold Lancer

Dermatology

174,000 audience

Expert Insights

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Dr. Zein E. Obagi, MD
Expert insight
Instagram

Investor Materials

Access the most recent investor updates published by the company.

Galderma IPO

Galderma launches IPO on the SIX Swiss Exchange and sets price range

Article

Galderma

Galderma – Largest IPO Placement Volume in Switzerland Since 2017

PDF

External Insights

A curated collection of third-party content relevant to the company and sector to help inform your investment decision.

Galderma at a Glance

Research

Galderma successfully issued an inaugural CHF 500 million bond

Galderma

Galderma receives U.S. FDA approval for Nemluvio® (nemolizumab) for adult patients living with prurigo nodularis

Galderma

Galderma to pursue a new scientific partnership with L’Oréal to further advance its category leadership in dermatology

Galderma

Galderma’s Relfydess™ (RelabotulinumtoxinA) receives positive decision for use in Europe

Galderma

Phase III Arcadia 1 and 2 trial primary results published in The Lancet: Galderma’s nemolizumab improves key aspects of atopic dermatitis – itch, skin lesions and sleep disturbance

Galderma

Galderma delivers record net sales of 2.2 billion USD and 10.8% year-on-year growth at constant currency for the first half of 2024

Galderma

Galderma introduces high potency Cetaphil serums designed for sensitive skin

Galderma

Shaping the future: Gerry Muhle on the technologies driving dermatology

Galderma

Galderma granted key manufacturing license updates for new biologics capabilities at its center of excellence

Galderma

Team

Meet the experienced professionals leading our organization

What the Pro's Are Asking

Here are the questions that institutional investors are asking before making an investment decision.

What are their brands?

Flagship brands include: Actinica, Akleif, Alastin Skincare, Alluzience, Azzalure, Benzac, Cetaphil, Differin, Dysport, Epiduo, Epiduo Forte, Epsolay, Loceryl, Metvix, Mirvaso, Oracea, Restylane, Restylane Skinboosters, Sculptra, Soolantra, Tri-Luma Cream and Twyneo.

What is 'nemo'?

A product that has been FDA-approved (and due to launch to the public) in 2025, which treats symptoms from prurigo nodularis (PN) a skin disease that impacts c200K people in the US and can be debilitating. It is aimed to improve quality of life including reducing itching and improving quality of sleep. It is scientifically curated so that an antibody inhibits a key signal that plays a part in PN.

What is their product pipeline?

NEMOLIZUMAB: A first-in-class antibody that blocks signaling of IL-31, which plays a key role in skin inflammation in atopic dermatitis and prurigo nodularis (PN) mentioned above; two skin conditions associated with high burden of disease.

CETAPHIL AND DIFFERIN PORTFOLIO EXPANSION: Continuously developing new products to further extend the Cetaphil and Differin range and meet the needs of specific skin conditions.

How high are industry barriers to entry?

The barriers to entry in the dermatology space are high.
Barriers include: (i) Meeting regulatory standards across different countries, including ingredient restrictions (ii) Product quality checks (iii) Supply chain issues that may inhibit the production process (iiii) Access to good quality ingredients (iv) Scientific knowhow behind formulas.

Why did they list in Switzerland?

As it is headquartered in Zug, Switzerland.