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Baby boomers and weight-loss drug users suffering from “facial sagging” are flocking to injectable cosmetic treatments and boosting sales, according to Galderma Dermatology Group.
The Swiss company that separated from Nestlé in 2019 and It went public last yearhas seen its stock price rise with the growing popularity of products designed to smooth wrinkles and improve facial features.
“I think there is a fundamental shift in what older people look like,” CEO Fleming Orenskov said in an interview with the Financial Times, pointing to the fact that more people are living healthier for longer.
The company has seen a “significant rise” in the number of consumers over 60 opting for cosmetic treatments. “People live another 10 to 15 years, and they want to look like how they feel, not what they might look like physically if they don't take care of themselves,” Orenskov added.
Galderma is the second largest player in the world in the $9 billion nerve filler and injection market after the American company AbbVie. The first are toxins that relax facial muscles to reduce wrinkles, and the second are gel-like injections used to make skin appear plumper.
Weight loss drugs like Ozempic are also an important driver of sales, Orenskov said, with many dermatologists reporting that patients are seeking the treatment for the so-called “Ozempic facial” in regions where there is a higher prevalence of drugs that use GLP-1s such as the Middle East and North America. .
“If they lose eight to 10 kilograms or more, they start to show facial sagging,” Orenskov said. “There, people will need to use padding.”
He added that the most popular Galderma filler for weight-loss drug users is a product called Sculptra, which was initially developed for HIV patients who experienced rapid weight loss.
In its IPO in March last year, Galderma raised about 2.3 billion Swiss francs ($2.7 billion) at 53 Swiss francs per share. The value of shares in the company doubled to 108.50 Swiss francs per share.
Galderma's net sales rose 9.2 percent to $3.2 billion in the nine months to September 2024, driven by its two largest divisions, dermatological skincare — which includes everyday skincare brands such as Cetaphil — and beauty injections. The third prescription therapy segment lagged behind, with sales growing 2.9 percent over the period.
US sales, which make up 40 percent of the group's total, grew 2.5 percent in the first three quarters, compared to 14.5 percent in the rest of the world as a result of lower consumer demand in the market.
The company hopes to boost its sales in the United States by launching its new product, Nemluvio, which treats atopic dermatitis, which recently received approval from the US Food and Drug Administration. The company said that about 7% of people in the United States suffer from eczema.
Despite the slowdown in the United States, Galderma said it has begun to close the gap with its main competitor in the injection category, AbbVie, which invented the famous Botox brand and occupies a leading market position in this category.
According to Jefferies analysts, AbbVie's Botox and Galderma's Dysport are top neuromodulators, with Dysport used in 80 percent of U.S. physician practices compared to 20 percent for Botox.
Galderma says Sculptra is now the second-largest filler brand in the United States. It has just launched a new filler designed specifically 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 founded in 2019 when Nestlé Sold the skin health department to a consortium of investors led by private equity firm EQT for $10 billion, after the food giant concluded that it did not fit into its portfolio that was primarily focused on nutrition.
Nestlé previously ran the skincare unit as a joint venture with L'Oréal, but took full control of it in 2014, in exchange for €2.6 billion of its shares in the French cosmetics group.
In August L'Oreal Re-acquisition of a 10% stake in the company. Analysts said the move signals renewed interest in the injectable cosmetics category, which has far outperformed other consumer categories.
