Nemolizumab

The IPO has been in the works for several years and could be among Europe's largest in 2024. After a few holdups, Swiss skincare company Galderma is finally going public in a highly anticipated market debut that could make for one of Europe’s largest listings this year. The company is offering more than 40 million shares at a price between 49 to 53 Swiss francs, Galderma said in a release. The offer period begins today and runs through March 20, with the first day of trading on the SIX Swiss Exchange expected on March 22. That price range adds up to an initial public offering (IPO) size of 2.3 billion Swiss francs ($2.6 billion). Including debt, Galderma’s total market value should come out in the range of 16.4 billion francs to 17.3 billion francs ($18.69 billion to $19.72 billion), Bloomberg reports, citing people familiar with the matter. The Wednesday offering quickly garnered demand in excess of the full deal size, according to Bloomberg. The company is backed by European private equity firm EQT, among other investors. Last summer, Galderma picked up around $1 billion in private placement funding for newly issued private shares. At the time, the company said a public offering was the “likely next step” in its efforts to become the world’s leading dermatology company, it said at the time. An IPO has been in the works ever since EQT bought the company, formally known as Nestle Skin Health, in 2019 for $10 billion. Galderma was formed back in 1981 as a joint venture between cosmetics maker L’Oréal and food and beverage company Nestlé upon the invention of the first Cetaphil formulation. In 2022, volatile market conditions derailed the company’s listing plans, which were delayed again in 2023 due to a “crisis of confidence” in the banking sector, a source close to the matter told Reuters at the time. Galderma’s IPO is reportedly expected to be one of Europe’s largest in 2024. It seems that timing could be crucial, with UBS’ global co-head of equity capital markets on Tuesday calling the current IPO market a “critical window” in an interview with CNBC.   Led by its injectable aesthetics portfolio, the company generated more than $4 million in 2023 sales. Galderma is largely known for its leading skincare brand Cetaphil. In 2021, it made its first U.S. buy, purchasing California-based skincare company Alastin and its anti-aging products for an undisclosed price. Last month, the FDA granted priority review to the drugmaker’s nemolizumab for prurigo nodularis. The agency previously designated the candidate as a breakthrough therapy in 2019. Nemolizumab is a first-in-class investigational monoclonal antibody that’s meant to inhibit IL-31 signaling to relieve itching in both prurigo nodularis patients and those with moderate to severe atopic dermatitis. Regulators in Europe have also accepted the company’s filing. Meanwhile, the company’s FDA approval bid for its injectable aesthetic RelabotulinumtoxinA was shot down late last year due to manufacturing issues.

Based on the price range, Galderma will have a forecast market capitalisation of up to CHF 12.6bn. Image credit: Shutterstock/JHVEPhoto. Galderma has announced a price range of CHF 49 to CHF 53 ($55.8 to $60.3) per share for floatation on the SIX Swiss Exchange. The Swiss skincare company, which revealed its intention to conduct an initial public offering (IPO) earlier in March, will have 40,453,467 new shares available. The offering also consists of 276,909 existing shares. An over-allotment of up to 6,109,158 existing shares at Galderma’s prescribed price range means the IPO could fetch as much as CHF 2.3bn. Galderma stated the offer period starts today, and is expected to end on 20 March. The final offer price will be published the day after. The company will officially begin trading on 22 March, as per a 13 March press release. Based on the price range, Galderma will have a forecast market capitalisation of up to CHF 12.6bn, as per the company. Galderma has said that the equity raise will be used to settle debt and develop its pipeline, according to the earlier press release this month. See Also: CTS Europe: The roadmap for generative AI in the pharma industry Biotechs heed political headwinds for drug pricing negotiations and partnerships The IPO is touted to be one of the largest listings in Europe in 2024 and the biggest since German car company Porsche AG went public in 2022. EQT , Galderma’s main shareholder, had been trying to take the skincare group public for some time but tough market conditions delayed the listing. Galderma raised $1bn through private placement in 2023 whilst the IPO was on hold. Galderma’s revenue grew by 8.5% in 2023 – bringing in sales of over $4bn . The company’s Cetaphil and Alastin brands, which include moisturisers, sunscreens for sensitive skin, and anti-ageing creams, are at the helm of its revenues. Galderma has also seen success in injectable aesthetics, gaining an US Food and Drug Administration (FDA) approval for its Botox competitor Azzalure in 2023. Galderma is working towards an approval for RelabotulinumtoxinA (QM-1114) for the treatment of frown lines and lateral canthal lines. The company suffered a setback with an FDA rejection for the botulinum formulation in September last year but said it has already identified the necessary changes for approval. Also in the company’s clinical pipeline is nemolizumab for the treatment of atopic dermatitis and prurigo nodularis. The drug is currently under review for marketing in the US and EU on the back of positive Phase III results . Galderma expects US approval in the first half of 2025 and has slated the drug to gain blockbuster status by 2027. GlobalData estimates the dermatology market size in the US was worth $26.5bn in 2023. GlobalData is the parent company of Pharmaceutical Technology .