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Baby boomers and diet drug users suffering from “facial sagging” are flocking to injectable beauty treatments and boosting sales, according to dermatology group Galderma.
The Swiss company, which separated from Nestlé in 2019 went public last yearhas seen its share price soar as the popularity of products designed to smooth wrinkles and improve facial features grows.
“I think there’s been a dramatic change in how older people look,” CEO Flemming Ørnskov said in an interview with the Financial Times, nodding to the fact that more people are living longer and healthier lives.
The company has seen a “significant increase” in consumers aged 60 and over opting for aesthetic treatments. “People live another 10 to 15 years and want to look how they feel, not how they would look physically if they hadn’t taken care of themselves,” added Ørnskov.
Galderma is the world’s second largest player in the $9 billion market for neuromodulatory injections and fillers after the US company AbbVie. The first are toxins that relax facial muscles to reduce wrinkles, and the second are gel-like injections that are used to make the skin look plumper.
Weight-loss drugs such as Ozempic are also a significant driver of sales, Ørnskov said, with many dermatologists reporting that patients are seeking the treatment for so-called “Ozempic face” in regions where there is greater penetration of drugs using GLP-1 such as the Middle East and North America.
“If they lose eight to 10 kilograms or more, they start to show a relaxed face,” Ørnskov said. “That’s where people will have to use filler.”
Galderma’s most popular filler for weight-loss drug users is a product called Sculptra, which was originally developed for HIV patients who experienced sudden weight loss, he added.
In its initial public offering in March last year, Galderma raised approximately SFr2.3 billion ($2.7 billion) at a price of SFr53 per share. Shares in the company more than doubled to SFr108.50 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 biggest divisions, dermatology skin care — which includes everyday skin care brands like Cetaphil — and aesthetic injectables. Its third division, prescription medicine, is lagging behind, with sales up 2.9 percent in the period.
Sales in the US, which account for 40 percent of the group’s total, rose 2.5 percent in the first three quarters, compared with 14.5 percent in the rest of the world as a result of reduced consumer demand in the market.
The company hopes to increase sales in the US with the launch of its new product, Nemluvio, which treats atopic dermatitis and recently received approval from the US Food and Drug Administration. About 7 percent of people in the U.S. suffer from eczema, the company said.
Despite the slowdown in the US, Galderma said it is starting to close the gap with its key competitor in the injectable category, AbbVie, which invented the well-known Botox brand and holds the leading market position in the category.
According to Jefferies analysts, AbbVie’s Botox and Galderma’s Dysport are the leading neuromodulators with Dysport used in 80 percent of US doctors’ offices compared to Botox’s 20 percent.
Galderma says Sculptra is now the second largest filler brand in the US. It has just launched a new filler specifically designed for people who want to look like they have better bone structure, for example men who want the appearance of a stronger jawline.
The Swiss group was created in 2019 when Nestlé sold its skin health division a consortium of investors led by private equity firm EQT for $10 billion, after the food giant decided it didn’t fit with its largely nutrition-focused portfolio.
Nestlé previously ran the skincare unit as a joint venture with L’Oréal, but took full control in 2014, in exchange for 2.6 billion euros of its shares in the French cosmetics group.
In August L’Oréal reacquired a 10 percent stake in the company. Analysts say the move indicates renewed interest in the cosmetic injection category, which has far outpaced other consumer categories.
