Galderma for sale – why we need the right buyer

Written by David Pascoe on September 27, 2018 in Galderma with 1 Comment

A for-sale sign is hanging outside the Galderma shop, shall we make them an offer? The rosacea behemoth that is Galderma could be about to change hands, read on to find out this sale could mean for rosacea sufferers and why we all have an interest in the new owner.

Galderma was created in 1981 as a joint venture between L’Oréal and Nestlé and is of course known for their prescription products like Soolantra, Metrogel, Oracea and Mirvaso as well as skincare products like Cetaphil. Nestle bough majority control of Galderma from L’Oreal in 2014. Even back in 2010 it was clear that Galderma wants to own the rosacea market.

What is happening now?

According to the bloomberg report, Nestle is now wanting to step back from pharmaceuticals and concentrate on commodities like coffee, water and pet food.

Given the reported problems experienced by Galderma – generic competition and job losses, rosacea sufferers can only hope that a large pharmceutical company committed to research and development will step in.

It is easy to see that concentrating on premium skincare products like Cetaphil would be a tempting area to drive sales for Galderma. Skincare ranges are so much easier to develop and distribute globally compared to gaining approval for new drugs.

Rosacea prescriptions are risky and expensive

We know from other research that a new rosacea prescription can cost anywhere from $4b to $11b to reach market – a truly staggering amount. Indeed a new rosacea treatment can fail at any of a number of points in the research and development process resulting in zero return for funds invested in research.

What do we need now?

Lets hope that a pharma with deep pockets emerges, one that sees value in the assets of Galderma and further sees a future in developing new treatments that help rosacea sufferers.

We all have an interest in the future owner of Galderma – that the right sort of buyer emerges that drives rosacea research and development for the benefit of us all.

Nestle’s Step Away From Skin Health Reignites L’Oreal Sale Talk
By Thomas Mulier and Corinne Gretler
Nestle SA’s likely retreat from skincare fuels questions about the company’s broader involvement in cosmetics and the future of a prized asset that many investors want to see sold: a $30 billion stake in L’Oreal SA.
Nestle said Thursday it would consider new owners for its dermatological business, a unit with $2.8 billion in annual revenue that Chief Executive Officer Mark Schneider said may no longer fit with the company’s overall strategy of focusing on products such as coffee, water and pet food.
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Pimple Cures
Nestle Skin Health makes products ranging from acne treatments to injectable skin fillers that compete with Botox. The unit has been a weak spot for the company due to generic competition, and is cutting hundreds of jobs and closing sites.
Read more: Nestle Plans to Cut 400 Jobs at Galderma Skin Health Research
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The skincare business was built out of a joint venture called Galderma that Nestle formed with L’Oreal in 1981. Nestle paid the French cosmetics maker more than $3 billion to buy the business out in 2014 and in the following months paid a further $1.4 billion to buy a portfolio of skin-care drugs from Valeant Pharmaceuticals.