Nestle Acquires Galderma Skin-Care
Nestle recently paid 3.6 billion dollars to take full control of the dermatology business Galderma.
Nestle will need to continue to create skincare products that revive skin to spur growth at Galderma, according to Nestle Chief Executive Officer Paul Bulcke.
Created in 1981, Galderma will become part of a new division called Nestle Skin Health SA. The acne and psoriasis treatment company creates a wide range of products, including prescription drugs, over-the-counter soaps and sunscreens for skin, hair and nails.
The buy from partner L’Oreal SA comes as Nestle’s push into the health care sector, which promises faster growth and wider profit margins than the company’s main food ventures.
“From Nestle’s point of view, there are benefits to diversifying and skin care has high margins and strong growth potential,” London’s Euromonitor International analyst Oru Mohiuddin told Bloomberg News. “But 2013 was not an easy year for Galderma and they’re preparing for the challenges ahead.”
Nestle plans to help the skincare unit revive its performance after its sales growth slowed last year to a mere 3.9 percent. Galderma had experienced a pace of more than 10 percent in previous years, but increased competition from generic United States based products trimmed margins.
The company has hired new managers and reorganized its business units in an attempt to revive business. Galderma will also rely more on Nestle’s global research, distribution and marketing strategies.
“[Galderma] gives us greater freedom because from time to time, it was rather restrictive [to be joint owners],” Nestle Chairman Peter Brabeck-Letmathe told Bloomberg News.
Nestle’s not the first consumer-product company to expand beyond the food industry into the skincare realm. Both Proctor & Gamble Co. and Unilever moved beyond the food assets to focus on brands like Dove and Gillette.
Families have begun eschewing packaged foods for more natural foods for the past more than two years, according to a January 30 report from BB&T Capital Markets.
According to IMS Health data in the skincare company’s most recent annual report, Galderma had sales of 2.2 billion dollars in 2013 and now controls 6.9 percent of the global dermatology market.
About half of Galderma’s sales come from prescription drugs like topical acne treatment Epiduo, while the remainder comes from over-the-counter treatments like Loceryl for fungal nail infections and aesthetic products like injectable Restylane.
The skincare company has attempted to decrease its reliance on prescription drugs in the United States market, since these products must undergo clinical trials and regulatory approvals and must compete with less expensive generic products.
“Keeping ahead of generics is key,” New York’s Sanford C. Bernstein analyst Andrew Wood told Bloomberg News. “They have a strong pipeline and that should keep them ahead.”
According to the annual report, in 2013, Galderma had seven products in late-stage clinical trials and debuted the drug Mirvaso to treat the facial condition rosacea, which causes inflammation.
“Food is quite tough right now,” Lawrence Hutter, consultant Alvarez & Marsal’s head of corporate advisory, told Bloomberg News. “Nestle is looking at high-margin growth business to maintain real differentiation for a variety of health issues.”
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7 Simple Dos and Don'ts to Improve Your Skin
Addressing Your Pre-Wedding Skincare Needs
Homemade Recipes for Healthy Hair and Skin
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Can You Improve Your Skin by Doing Yoga?
The Benefits of Yogurt for Skin (Internally and Externally)
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The Future of Dermatology Procedures 2017 Scholarship – Healthy Skin Portal
11 Easy Ways to Keep Skin Looking Terrific
Tips for Eating Chocolate and Not Harming Your Skin
Summer Skincare Essential: Face and Body Scrubs
Seven Foods for Terrific Skin
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What are the Best Treatments for Your Skin?
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ASA Offers Up Seven Principles for Healthy Skin
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How Do Celebrities Keep Their Skin Looking Great?
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It's Time to Get Ready for Great Looking Summer Hair and Skin
Six Skincare Tips from Different Cultures
Top Beauty Tips on a Budget
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Essential Ingredients for a Great Complexion
Six Foods to Help Hydrate Your Skin
New Ideas for Morning Skincare
The Surprising New K-Beauty Super Ingredient: Watermelon
Five Simple Foods to Boost Your Skin
Keeping Your Skin Healthy in the Summer
Top Skincare Tips for Guys
5 Amazing Skincare Products That Are Cruelty-Free
The Best Selling Beauty Product on Amazon Will Surprise You
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4 Acids That Will Actually Help With Your Skin
Want Better Skin? Here Are Six Foods to Help You Get It
What You Need to Do to Keep Great Skin for Life
How Much Skin Should Be Removed With a Mole?
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Jessica Alba's Skincare Line
Fall and Winter Skincare for Men
How to Create An Effective Daily Skincare Routine
4 Supplements You Should Be Using for Your Skin
Collagen Powder: The Next Skincare Secret or Another Passing Fad?
How Do You Pick The Right Moisturizer?
7 Ways to Protect Your Skin This Winter
8 Top Smoothie Ingredients for a Radiant Complexion
Five Water-Rich Foods Your Skin Needs
Uncovering the Secret of the Japanese 4-2-4 Cleansing Technique
Avocados: A Very Healthy Fruit
Using Superfood-Enhanced Beauty Products
Six Tips to Avoid Bad Skin Days
New Technology Allows Restoring of Your Own Collagen and Elastin
How to Slow the Skin's Aging Process
Important Supplements for Aging Skin
How Dermatologists Take Care of Their Skin
How Traditional Thanksgiving Foods Affects Your Skin
How to Use Chocolate to Get Better Skin
Simple Life Hacks for Your Skin
Natural Remedies to Keep Your Skin Looking Great This Winter
Organic Skin Care on the Rise
Little-Known Skincare Rules That Everyone Should Follow
Probiotics for Great Skin
A Supermodel's Skincare Secrets
Your Skin-Friendly Grocery List
Could Oil Cleansing Save Your Skin?
Beauty Device Market Set to Rise in Coming Years
How to Keep Your Skin Radiant Even in Winter
Night Cream: The Key to Healthy Winter Skin
Beauty Brands Harnessing the Power of Superfoods
4 Ways Alcohol Damages Your Skin
How Probiotics Help Skin
4 Ways to Maintain Flawless Skin in the Dead of Winter
Microbiome Imbalance in Gut May Lead to Acne
The Best Diet for Terrific Hair and Skin in Winter
Is Coconut The Key to Healthier Skin?
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Six Ways to Improve Your Skin
What You Need for a Skin-Friendly Diet
Five Simple Steps to Healthier Skin
Why Vaseline is Still An Excellent Choice for Skincare
Dermaplaning Myths Debunked
What Are The Best Ways to Deal with Blackheads?
Say Goodbye to Dry Skin
Yoga Can Help Your Skin
Using a K-Beauty Routine to Tackle Eczema
What is Your Skin Barrier and How Can You Protect It?
Five Top Foods for Maintaining Healthy Skin
Little-Known Tricks to Give You Better Skin
How Can Ayurveda Principles Help Your Skin?
Five Foods with Top Beauty Benefits
Get Your Skin Ready for Summer
3D Printing Could Replace Skin Grafts
Adjusting Your Vitamin D Levels During The Summer
Using Orange Peels to Improve Your Skin
Carotenoids: The Secret to Healthy Skin
Your Greatest Ally in the Quest for Flawless Skin: Vitamin C
Japanese Skincare Routine May Outshine Popular Korean Routine
Six Ways to Help Your Skin Beat The Summer Heat
Consume Fruit for Radiant Skin
New Study Shows Importance of Key Enzyme in Skin Diseases
Bad Habits to Break for Great-Looking Skin
Papaya for Skin Care
Five Fun Ways to Get More Watermelon in Your Diet
Busting Skincare Myths
Tips for Achieving Glowing Skin
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Vitamin C for Healthy Skin
Using Collagen to Improve Your Skin
What Can Mushrooms Do For Your Skin?
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Regular Facials Keep Skin in Top Condition
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The Power of Magnetic Masks
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Maple Leaf Extract May Prove The Next Anti-Wrinkle Miracle Ingredient
Essential Winter Skin Care
Does Your Skincare Routine Need a Cat-Face Towel? Absolutely!
Six Overnight Skincare Products for Daytime Beauty
How a 22-Year-Old Created an Empire of Vegan Skincare Products
Revolutionary New Process Could Help Regrow Damaged Skin
Cinnamon for Skin Health
Does The Key to Beautiful Skin Lie in Your Gut?
How to Have Truly Healthy Skin
Five Tricks Everyone Should Know to Keep Their Skin Looking Great
The New Three-Minute Skincare Routine
Nine Foods That Improve Skin
Cold Weather Skin Tips
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Drinking Coffee Can Actually Help With Rosacea
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