Galderma: Swiss Pure-Play for Eternal Youth

Jun 20, 2025 9 min read

Patrick

“Mirror, mirror on the wall, who is the fairest of them all”

– The evil queen in the fairytale Snow White

arvy’s teaser: Galderma is Europe’s only pure-play dermatology giant — scaling fast in aesthetics, skincare, and injectables. As beauty tilts clinical and Gen Z flees tradition, this Swiss innovator is becoming L’Oréal’s best-kept secret weapon.

Dermatology.

It’s all about skin and aesthetics — a vital piece of the broader beauty market.

And beauty? It’s one of my favorite sectors to invest in. Why? Because the total addressable market is massive — almost anyone in the world can be your customer. It fulfills a daily demand, driven by replenishable consumer goods. People are always curious to try new products, and demand tends to be highly inelastic — beauty products often remain in shopping carts, even during recessions. Many of these brands fall into the “affordable luxury” category, backed by strong customer loyalty and pricing power. The undisputed category leader? Queen L’Oréal. Standing before the market’s mirror, asking: “Mirror, mirror on the wall — who’s the fairest of them all?”

But zoom in on dermatology, one of beauty’s fastest-growing segments, and suddenly Snow-White steps into the spotlight — with growth rates that could make even the vainest queen jealous.

Enter Europe’s only pure-play dermatology leader.

And yes — it’s Swiss.

Galderma.

Chart 1: Leading positions in dermatology worldwide

Source: Investor Presentation, May 2025, Galderma

Pure Play in an Attractively Growing Market

Galderma’s roots trace back to 1981, when it was founded as a joint venture between two heavyweights: L’Oréal and Nestlé.

Fast forward to 2014, it became Nestlé Skin Health, before being sold to Swedish private equity group EQT in 2019 for $10.2 billion.

Since then, the name Galderma was brought back — and in 2024, it re-entered public markets through an IPO.

Today, Galderma is a scaled, independent company focused entirely on dermatology.

Its business spans three key areas:

Injectable Aesthetics (52% of revenues)
Dermatological Skincare (30%)
Therapeutic Dermatology (18%)

And yes — its most recognized product you for sure will know?

Dysport – the well-known Botox alternative (chart 1).

In fact, Galderma and Allergan (owner of the original Botox, now under AbbVie) form a duopoly in this market.

But here’s the kicker: while Allergan operates as a division inside a pharma giant, Galderma is a pure play.

And that matters.

Because when you’re part of a conglomerate, your division may not get top billing. But as a standalone company, like Galderma, all focus, resources, and strategy go toward excelling in just one thing.

It’s a classic setup we love at arvy. Pure plays or spin-offs in focused, high-growth niches. Think Zoetis, Ferrari, or Accelleron — all thriving as independent, specialized leaders.

Back to Galderma: it’s operating in the fast-growing self-care dermatology segment (chart 2), which is expanding at around 7% annually — well above the broader beauty market’s 4%, where queen L’Oréal dominates.

And Galderma?

It’s not just riding the wave — it’s outgrowing the market, with a proven ability to deliver 12% annual growth.

Put simply, Galderma is a pure play growth story in a resilient, high-demand market — with the scale and execution to beat its own benchmarks.

And yes, jealous queen L’Oréal surely knows exactly what they once had in their hands…

Chart 2: Dermatology vs other selected ‘selfcare’ markets

Source: Investor Presentation, May 2025, Galderma

Rumors Meet the Scary Rise of “Ozempic Face”

Let’s circle back to L’Oréal — they currently hold a 10% stake in Galderma.

They acquired this position in August 2024 from EQT and the Abu Dhabi Investment Authority, who together reduced their stake from 77% down to 67% in the process. A clear endorsement of Galderma’s business quality and long-term potential.

And EQT?

As typical for private equity, they’re gradually exiting. As of today, they still hold 48%, but the plan — according to market chatter — is to fully divest over the next three years via secondary share placements.

Meanwhile, L’Oréal is rumored to be interested in increasing their stake — to 20–30%, possibly even buying the entire company.

And honestly, it makes strategic sense. Why is L’Oréal so jealous of Galderma?

Yes, it’s growing faster than the broader beauty market. But there’s more at play. Competition is heating up, especially in the lucrative dermatology segment. In fact, L’Oréal has been losing market share among Gen Z consumers, an audience increasingly drawn to clinical skincare and aesthetic treatments over traditional beauty products.

That’s one reason why L’Oréal partnered with Galderma.

Another?

Enter the “Ozempic Face” (chart 3).

You’ve likely heard of Ozempic, the blockbuster weight-loss drug from Novo Nordisk. Millions are using it, and yes — it works. But it doesn’t come without side effects. One of the most talked-about? The so-called “Ozempic Face”: Wrinkles, sunken eyes, more prominent bone structure, thinner lips and sagging skin.

In short: rapid fat loss in the face leads to an aged appearance.

And for that, there’s Sculptra (chart 1 again).

A key Galderma product, Sculptra is a dermal filler that stimulates collagen production, helping restore facial volume and skin elasticity — a direct counter to “Ozempic Face.”

So alongside Dysport, Galderma is also a dominant force in aesthetic injectables for emerging beauty needs.

And it doesn’t stop there.

Galderma boasts a strong pipeline of next-gen treatments. One standout is Nemluvio, targeting prurigo nodularis and atopic dermatitis (itchy skin) — high-unmet-need areas with limited competition and few approved biologics.

This could be a blockbuster in the making (>$1 billion in revenue annually).

Wow, Patrick — this is shaping up to be a hell of a “Good Story.”

Now, let’s see what Mr. “Good Chart” has to say…

Chart 3: Ozempic Face: Wrinkles, sunken eyes, more prominent bone structure, thinner lips and sagging skin

Source: Cleveland Clinic

Cup-With-Handle

Galderma is a relatively new listing, with just a few quarters of trading under its belt.

That means we don’t yet have a deep bench of fundamental data or price action history — nor do we truly know how the stock behaves in market turbulence, or if it’s as resilient as the business seems to be on paper.

On top of that, we’re looking at a lofty PE of 46 and a thin free cash flow yield of 1.1%. In other words: the “Good Chart” still needs some time to catch up with the richly valued “Good Story.”

That much is clear from this year’s fast and furious ~40% V-shaped correction. A big part of that volatility? EQT’s well-telegraphed plan to fully exit its stake. That’s a lot of liquidity hitting the market — and unless investor demand is strong enough to soak it up, there’s always the risk of a price slide.

But here’s what we do know: So far, every placement has been quickly absorbed.

Demand is there.

And as more price data rolls in, the chart is beginning to reveal something interesting — signs of volatility, yes, but also rapid resilience. And that’s starting to shape one of the most powerful chart patterns in technical investing.

No, not a base consolidation. Not a double bottom either.

It’s the infamous Cup-With-Handle.

Chart 4: Galderma since its IPO in 2024