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According to dermatology group Galderma, sales are increasing as baby boomers who suffer from “sagging faces” and people who use weight-loss drugs flock to injectable beauty treatments.
The Swiss company, which was spun out of Nestlé in 2019 and went public last year, has seen its share price soar as its products aimed at smoothing wrinkles and improving facial features grow in popularity.
“I think there has been a dramatic change in the way older people look,” CEO Fleming Ornskov said in an interview with the Financial Times, adding that more people are healthier and living longer lives. I nodded at the fact.
The company had seen a “significant increase” in consumers over the age of 60 choosing aesthetic treatments. “People have another 10 to 15 years to live and they want to be the way they feel, not the way they physically look if they didn’t take care of themselves,” Ornskov added.
Galderma is the world’s second-largest company in the $9 billion neuromodulator injectables and fillers market, behind US company AbbVie. The former is a toxin that relaxes facial muscles and reduces wrinkles, while the latter is a gel-like injection used to plump the skin.
Weight loss drugs such as Ozempic are also a major sales driver, with many dermatologists saying that in areas where GLP-1-based drugs are more prevalent, patients are seeking treatment for the so-called “Ozempic face.” Ornskov said. Just like in the Middle East and North America.
“When you lose more than 8 to 10 kilograms, your face starts to look sagging,” says Ornskov. “You have to use filler there.”
Galderma’s most popular filler among weight-loss drug users is a product called Sculptra, which was originally developed for HIV patients experiencing rapid weight loss, he added.
In an initial public offering last March, Galderma raised about CHF2.3 billion ($2.7 billion) at a price of CHF53 per share. The company’s share price more than doubled to CHF108.50 per share.
Galderma’s net sales increased 9.2% to $3.2 billion in the nine months ended September 2024. This was driven by the company’s two major divisions, dermatology skin care (which includes everyday skin care brands such as Cetaphil) and cosmetic injectables. The third prescription therapy segment was a laggard, with sales increasing 2.9% in the same period.
Sales in the United States, which accounts for 40% of the group, increased by 2.5% in the first three quarters as a result of weak consumer demand in the market, compared to 14.5% in other countries.
The company is aiming to increase sales in the United States with the launch of Nemulbio, a new product to treat atopic dermatitis, which recently received approval from the U.S. Food and Drug Administration. According to the company, approximately 7% of Americans suffer from eczema.
Despite the U.S. economic slowdown, Galderma said it is starting to close the gap with AbbVie, its main competitor in the injectable drug category. AbbVie invented the famous Botox brand and holds the top position in the market in this category.
AbbVie’s Botox and Galderma’s Dysport are the leading neuromodulators, used in 80 percent of U.S. physician practices, compared to 20 percent for Botox, according to Jefferies analysts.
Galderma said Sculptra is now the second-largest filler brand in the United States. The company has launched a new filler specifically designed for people who want to look like they have better bone structure, such as men who want the appearance of a stronger jaw.
The Swiss group was created in 2019 when Nestlé sold its skin health division for $10 billion to a consortium of investors led by private equity firm EQT, which saw the food giant invest in a portfolio primarily focused on nutrition. This is because we have come to the conclusion that it is not suitable for this purpose.
Nestlé previously ran the skincare division as a joint venture with L’Oréal, but took full control in 2014 in exchange for a €2.6 billion stake in the French cosmetics group.
In August, L’Oréal reacquired a 10% stake in the company. Analysts said the move shows renewed interest in the cosmetic injectables category, which far exceeds other consumer categories.
