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Products for beautiful, young-looking skin are trendy. Galderma makes huge profits from it.
In Switzerland, Galderma’s Daylong sun cream is best known. The company, based in Zug, produces numerous products for healthy and beautiful skin. This ranges from cosmetic creams against skin aging, medical products against acne or psoriasis, to the Botox counterpart “Azzalure”. A new drug against neurodermatitis is currently in the approval process in the USA.
Further growth thanks to fresh stock market capital
In 2019, the Swiss food company Nestlé sold Galderma to a consortium led by the Swedish private equity company EQT for 10.2 billion francs.
Legend: The former Nestlé subsidiary Galderma celebrates its stock market debut on the Swiss Stock Exchange SIX. Reuters/Denis Balibouse
Since the sale, Galderma has grown significantly and invested in the development of new products. However, the investments have also led to an increase in the debt burden. Accordingly, Galderma would like to raise fresh capital by going public on the Swiss stock exchange today. The company is hoping for 2.3 billion francs. The Swiss stock exchange SIX assumes that Galderma’s IPO will stimulate trading.
Longing for beauty increases – Galderma benefits
Galderma also benefits from a good market environment. The desire for beauty and youthful appearance is growing in society. This means that the willingness to pay for corresponding products and procedures also increases.
On the surface, people are addressed with their needs. Ultimately, the marketing of the body as a product creates new needs for beauty.
The doctor and medical ethicist Jürg Streuli also notes this tendency. He heads the Dialog Ethics Foundation, which deals with the best possible action in health and social services. On the surface, the beauty industry appeals to people and their needs. In the background, the body would be marketed as a product, creating new needs for beauty.
Needs that in turn drove demand for beauty products, says Streuli. Galderma also benefits from this trend. The company continues to set growth targets of around ten percent.