Galderma Group AG "2Q'26 Results - Second Opinion" (Buy) Weston

Research evidence excerpt

Galderma Group AG "2Q'26 Results - Second Opinion" (Buy) Weston

Forecast returns

Forecast price appreciation 18.1%

Forecast dividend yield 0.4%

Forecast stock return 18.6%

Market return assumption 5.2%

Forecast excess return 13.4%

Company Description

Galderma is a dermatology-focused global biopharma and consumer company,

headquartered in Switzerland. Founded in 1981 as a JV between L'Oréal and Nestlé, it was

acquired by private equity in 2019. Galderma IPOed on the SIX Swiss Exchange in March

2024. Key brands include Dysport, Restylane and Sculptra in injectable aesthetics, and

Cetaphil and Alastin in dermatological skincare. Galderma also provides prescription and OTC

therapeutics for acne and rosacea. Nemluvio (nemolizumab) is approved in the US and the EU

for atopic dermatitis and prurigo nodularis. EU rollout began in Germany in 1Q25.

Valuation Method and Risk Statement

Dermatology Industry risks include: i) economic sensitivity to aesthetic procedures, ii)

increasing competition in neuromodulators, iii) sustainability of dermatological skincare

growth within the consumer derm category, iv) increasing regulation of social media/

influencer messaging and v) attractive secular growth in injectable aesthetics attracts new

entrants. Galderma-specific risks include: i) regulatory failure for Relfydess approval in the US;

ii) commercial underperformance in the nemolizumab launch and/or meaningful changes in

payer coverage that limits growth; iii) reliance on Ipsen for Dysport supply; and iv) high cost of

debt

Valuation: We use a SOTP basis with Galderma ex-nemo valued on a 2030E EV/EBITDA

multiple, informed by relative growth rates & peer multiples, which we discount back to

present. We then add the value of nemolizumab using PharmaValues NPV.