Sustainable Growth Advisers, LP - Global Growth Composite on Galderma Group AG
Thesis
SGA initiated Galderma because of its leadership across injectable aesthetics, dermatological skincare, and therapeutic dermatology. Consumable products and repeat treatments create recurring revenue, while brand preference among physicians and patients supports pricing power. Growth should be driven by continued share gains in aesthetics, the international rollout and eventual U.S. approval of Relfydess, and the expanding commercial opportunity for Nemo. The fund expects sustained double-digit revenue and earnings growth over the next three years.
“We believe Galderma is well-positioned for sustained double-digit revenue and earnings growth over the next three years, supported by the recurring nature of the company’s revenues, its strong competitive positioning across both aesthetics and therapeutics, and significant growth runway from Nemo and Relfydess.”
Key risks
- Further delays to U.S. regulatory approval for Relfydess
- Uncertainty around the ultimate commercial opportunity and durability of uptake for Nemo
- Competitive dynamics within biologic dermatology