L’Oréal has recently acquired a 10 percent stake in Galderma, a global leader in dermatology, in a bid to expand its presence in the burgeoning dermatological beauty market. The investment is part of L’Oréal’s strategy to tap into the growing demand for holistic beauty solutions, which includes diagnostic tools, dermocosmetics, and aesthetic treatments. With this partnership, L’Oréal aims to leverage Galderma’s expertise in dermatological solutions and injectable aesthetics to explore new avenues of innovation and growth.
According to Nicolas Hieronimus, chief executive of L’Oréal, the investment is a strategic move to tap into the growing market of injectable aesthetics, which is expected to double in size over the next decade. Hieronimus stated that L’Oréal’s dermatological beauty division, which includes brands such as CeraVe and La Roche-Posay, has been a key driver of growth for the company, registering a 16.4 percent increase in sales in the first half of the year. “It allows us to explore partnering in the fast-growing aesthetics market, a key adjacency to our own pure beauty play,” he said.
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The partnership between L’Oréal and Galderma will focus on developing new solutions for dermatological skin care and injectable aesthetics, leveraging the expertise of both companies. Galderma, which was originally co-founded by L’Oréal, has a strong portfolio of brands, including Cetaphil and Dysport, and a presence in over 90 countries. The company has undergone significant transformation in recent years, shifting its focus from therapeutic dermatology to a pure-play dermatology company with a majority of its business derived from injectable aesthetics and dermatological skin care.
The investment in Galderma is seen as a positive move by analysts, who believe that L’Oréal is positioning itself for future growth in the beauty market. Bruno Monteyne, senior analyst at Bernstein, stated that L’Oréal’s investment in Galderma is a strategic move to tap into the growing demand for medicalization and premiumization of beauty. With this partnership, L’Oréal aims to be at the forefront of innovation in the dermatological beauty market, exploring new avenues of growth and expanding its presence in the industry.
