Key Takeaways:
Galderma Group AG reported first-half net sales of $3.13 billion, surpassing $3 billion for the first time in a six-month period and beating its own expectations as the pure-play dermatology company raised its full-year revenue guidance.
"The strong first half reflects the strength of our integrated dermatology strategy," Chief Executive Officer Flemming Ørnskov, M.D., M.P.H., said in a statement. The company's upcoming inclusion in the Swiss Market Index, effective Sept. 21, marks a milestone in its journey as a listed company, he added.
Net sales rose 24.6% at constant currency from a year earlier, driven primarily by volume and favorable mix, with double-digit growth across all three product categories. Injectable Aesthetics generated $1.44 billion, up 12.1%, led by neuromodulators such as Dysport and the expanding Reldyness (relabotulinumtoxinA) franchise, now approved in 33 markets. Dermatological Skincare reached $848 million, up 16.4%, with strong contributions from Cetaphil and Alastin across both U.S. and international markets. Therapeutic Dermatology also hit $848 million, surging 67.9%, as Nemluvio (nemolizumab) contributed $433 million and accounted for more than half of the segment's sales for the first time.
Core EBITDA rose 42.8% at constant currency to $802 million, with the margin expanding 328 basis points to 25.6%, ahead of initial expectations. Core net income climbed 66.3% to $547 million, and core earnings per share reached $2.34, up 68.5%, helped by lower financing costs after the company's March refinancing of its term loan via a Eurobond issuance. Net leverage fell to 1.6 times from 2.2 times at year-end 2025.
Galderma raised its full-year net sales growth forecast to 19% to 21% at constant currency, from a prior range of 17% to 20%, citing a stronger-than-anticipated trajectory in Dermatological Skincare, Therapeutic Dermatology and Neuromodulators. It confirmed its core EBITDA margin target of approximately 26% at constant currency. The guidance factors in manageable exposure to announced U.S. tariffs and the company's ability to absorb potential consumer demand deterioration in the second half.
The company continued to advance its pipeline, completing enrollment in a Phase 2 chronic pruritus of unknown origin trial for nemolizumab and progressing enrollment in a systemic sclerosis trial. It also received a recent Complete Response Letter from the U.S. Food and Drug Administration addressing remaining observations on the manufacturing site and analytical method optimization for relabotulinumtoxinA, which it said it is committed to resolving promptly.
The guidance raise signals management expects broad-based demand to continue across its portfolio. Investors will watch for progress on the U.S. FDA resubmission for relabotulinumtoxinA, with mid-term guidance beyond 2027 expected in the first quarter of 2027.
This article is for informational purposes only and does not constitute investment advice.
