The IPO announced recently, is poised to be among Europe’s largest this year, potentially influencing other significant listings. With an implied placement volume nearing 2.3 billion francs, it stands as Switzerland’s most substantial IPO since Landis + Gyr’s 2017 offering, matching a similar fundraising amount.
Increasing stock markets and the potential for reduced interest rates are fueling investor enthusiasm for IPOs, despite some firms experiencing declines in their share prices post-debut.
Established as a partnership between Nestle and L’Oreal, Galderma specializes in selling skincare products such as Cetaphil for sensitive skin, along with medical solutions like muscle relaxants, fillers, and creams for conditions like rosacea. Primarily comprising new shares, Galderma’s IPO is expected to yield gross proceeds of 2 billion francs, earmarked by the company for debt repayment.
For yet another consecutive year, Galderma has met its annual targets, maintaining its growth trajectory since becoming independent in October 2019. In the fiscal year ending December 31, 2023, Galderma achieved record-breaking net sales of $4,082 million, representing an 8.5% year-on-year increase in constant currency terms. This performance aligns closely with the higher end of its projected 6-9% FY 2023 net sales guidance.
From 2019 to 2023, Galderma’s net sales experienced a compound annual growth rate (CAGR) of 11.9% in constant currency terms, surpassing the roughly 7% growth rate observed in the dermatology market, which boasted a market size of around USD 87 billion in 2023.
Key brands in Dermatological Skincare, notably Cetaphil and Alastin, made significant contributions to this growth, outpacing market performance. This was driven by ongoing efforts to expand geographically and diversify product portfolios, including the launch of Cetaphil Healthy Renew, Alastin ReSURFACE Skin Polish, and the C-RADICAL Defense Antioxidant Serum.
In 2023, Cetaphil reached a significant milestone, surpassing $1 billion in net sales. With a heritage spanning over 75 years in sensitive skincare, Cetaphil continued to innovate its product range to address a variety of sensitive skin needs. For instance, the introduction of Cetaphil Healthy Renew, a groundbreaking healthy-aging skincare line available in Brazil and the U.S., offers a retinol alternative suitable for sensitive skin and enriched with purified peptides to combat visible signs of aging.
Operating in more than 90 countries, Galderma strategically focuses on lucrative and consumer-centric segments within the dermatology market, known for their robust growth and enduring fundamentals. With its top seven markets contributing to over 70% of net sales, Galderma sees significant expansion opportunities, particularly in rapidly growing regions and through the optimization of its flagship brands. The company’s global presence is strengthened by comprehensive omni-channel strategies, including a specialized salesforce of over 1,900 professionals engaging with more than 110,000 healthcare providers. Additionally, Galderma’s network encompasses over 270,000 retailers, retail outlets, and pharmacies.
