Galderma Records Net Sales Growth In 2022 Ahead Of Planned IPO

Key Highlights

• Swiss dermatology company Galderma has reported a strong financial performance, posting $3.8 billion in net sales in 2022, representing a 13.9% increase compared to 2021 on a constant currency basis. 
• The company’s growth was primarily driven by its injectable aesthetics and dermatological skincare units. 

Galderma has been preparing for a possible initial public offering (IPO), and CEO Flemming Ornskov told Reuters that the company is ready for the next step. If it goes ahead, the IPO could value the company at around 20 billion Swiss francs ($21.7 billion), making it one of the biggest in Europe in 2023.

Galderma had originally planned to pursue an IPO over a year ago but postponed its plans due to turbulent equity markets in 2022. Despite the delays, the company’s owners, including EQT, will decide whether to proceed with an IPO. Ornskov’s priority is to continue delivering results focusing on profitability and cash generation. According to Fitch Ratings, the company aims to pay down its debt, which currently stands at around $3.5 billion, maturing in 2026.

Galderma is expected to raise a significant amount of fresh capital in an IPO to help bring down leverage, and banks have been engaged to look at options, including timing. However, there have been no changes since Ornskov’s previous comments in 2021.

Core Earnings Of Galderma In 2022

In 2022, Galderma generated core earnings (EBITDA) of $791 million, up 14.5% compared to the previous year on a constant currency basis. For 2023, the company targets net sales growth of between 6% and 9% and plans to introduce two major new products from its pipeline.

Galderma operates in several business segments, including injectables, where it competes with Allergan, a subsidiary of AbbVie, in dermatological skincare, where its peers include L’Oreal, and for atopic dermatitis (eczema), where its competitors include Sanofi, among others.

After the Easter break in April is seen as the next potential IPO window, but there is no certainty that the company will proceed at that time. EQT declined to comment on the IPO plans.