Galderma hits record US$2B sales with strong performance in dermatological skin care and injectables

(Image credit: Cetaphil)

27 Jul 2023 --- Galderma sales climbed to US$2 billion for the first time in the first half of this fiscal year, up 6.9% year-on-year. The Swiss manufacturer saw its growth driven by its Dermatological Skincare and Therapeutic Dermatology categories, while its range of injectable treatments posted double-digit performance.

Despite the uncertain macroeconomic environment, consumer demand for premium products remained resilient, the company maintains.

Galderma CEO Dr. Flemming Ørnskov attributes the success largely to the company’s premium positionings in high-growth markets, while highlighting new FDA approvals and product launches in the first half of 2023.

International sales driven up
From a geographical perspective, Galderma posted “particularly strong” net sales momentum internationally, with double-digit growth in fast-growing markets such as China, India and Mexico.

Galderma launched the Alastin Skincare ReSurface Skin Polish earlier this year (Image credit: Alastin Skincare).Earlier in 2023, Galderma raised over US$1 billion for newly issued shares in a private placement round.

The investment came from a group consisting of current shareholders, new investors, as well as management – ostensibly lessening the amount it needs to raise through public markets.

Galderma outlined its guidance for the full year, expecting to deliver 6-9% net sales growth.

Product category performance
Injectable Aesthetics, a Galderma category comprising face fillers and other injectable beauty solutions, delivered single-digit constant currency growth over the period, from a high comparative base in 2022.

While Galderma gained market share across its Injectable Aesthetic portfolio, Neuromodulators and Biostimulators stood out with double-digit constant currency growth for the period.

Overall category growth was subdued by the return to typical seasonality following Galderma’s high 2022 rebound following the COVID-19 crisis, as well as “softening” in demand for fillers in some key markets.

Dermatological Skincare – which comprises the skin care brands Cetaphil and Alastin – continued its growth trajectory. Cetaphil, in particular, posted double-digit growth internationally, while Alastin Skincare was highlighted for its recent expansion into Mexico.

Therapeutic Dermatology “returned to growth” following the 2022 loss of exclusivity events in the US. This growth was driven by successful yield improvement measures in the US for key brands such as Oracea, Aklief and Soolantra.

R&D highlights and regulatory clearances
Galderma’s margin expansion guidance incorporates “significant” core EBITDA generation, which is planned to be partially reinvested into costs of nemolizumab – a biological therapy used to treat moderate to severe chronic skin condition prurigo nodularis (also called nodular prurigo) and atopic dermatitis – ahead of its future launch.

This announcement follows “positive” phase III results in its nemolizumab treatment for prurigo nodularis and atopic dermatitis skin diseases. “Nemolizumab monotherapy met all primary and key secondary endpoints and demonstrated significant improvements on itch, skin clearance and sleep disturbance in adult patients with prurigo nodularis,” Galderma highlights.

In the study, 56% of nemolizumab-treated patients observed a relief in itch intensity. Meanwhile, 38% of nemolizumab-treated patients reached treatment success in skin lesions, compared to 11% percent in the placebo group.

Last March, Galderma brand Cetaphil unveiled a digital AI skin analysis tool (Image credit: Cetaphil).In other R&D activities, Galderma evaluated the efficacy and safety of trifarotene cream for preventing the risk of atrophic acne scar formation.

The findings of this research demonstrated a “statistically significant reduction” in total atrophic acne scar count with trifarotene cream versus vehicle treatment as early as week two, with a progressive and statistically significant difference up to week 24.

Galderma received approval from the FDA for Sculptra for the correction of fine lines and wrinkles in the cheek area.

Sculptra is the first and original FDA-approved PLLA collagen stimulator that, when injected into the cheek area, helps stimulate natural collagen production to smooth wrinkles and improve skin quality, such as firmness and glow, with results lasting up to two years.

Restylane Galderma received FDA approval for its newest hyaluronic acid filler, Restylane Eyelight, for the treatment of under- eye hollows, also known as dark shadows, in adults over the age of 21. It is the first and only product in the US formulated with NASHA Technology for volume loss under the eyes, giving patients natural-looking results.

Product launches
In new product releases, Galderma launched a new indication of Restylane Defyne, for the treatment of chin retrusion, in China. This is the first approval for a hyaluronic acid injectable for this indication in the Chinese market.

Galderma also launched Alastin Skincare ReSurface Skin Polish as its newest product addition within the Alastin Skincare collection of clinically tested products.

ReSurface Skin Polish is designed to sweep away dead skin cells and impurities for instantly smoother and visibly brighter skin. It performs dual-action exfoliation through volcanic minerals and glycolic acid in a non-irritating, hydrating formula. It has been clinically proven to help improve tactile roughness and skin dullness within one week of use.

To support users with sensitive skin, Cetaphil unveiled a digital AI skin analysis tool. The comprehensive skin analyzer offers personalized skin assessment scores and skin care regimen recommendations in seconds.

In May, Galderma launched Face by Galderma, an aesthetic visualization tool powered by augmented reality that allows aesthetic professionals and patients to visualize injectable treatment results at the planning stage before actual treatment begins. This innovative solution gives patients a simulated real-time “before and after” visual.

Edited by Benjamin Ferrer

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