Almirall’s Dermatology Surge: A Biologics-Driven Dominance with Catalysts in Sight

The European dermatology market is undergoing a quiet revolution, and Almirall (ALM.MC) stands at its epicenter. With a 23.4% surge in Q1 2025 European Dermatology sales—propelled by its biologics portfolio—and a 35% YoY EBITDA expansion, the Barcelona-based pharmaceutical giant is proving that its strategy to dominate specialized dermatology is no flash in the pan. This is a company primed to capitalize on unmet medical needs, geographic expansion, and a robust R&D pipeline. For investors, the question isn’t whether to act—it’s why you haven’t already.

The Biologics Engine: Ebglyss and Ilumetri Lead the Charge

At the heart of Almirall’s growth are two biologics that are redefining treatment paradigms. Ebglyss® (lebrikizumab), its game-changing therapy for atopic dermatitis, has racked up €54 million in sales since its German launch in late 2023. With recent entry into France and plans to expand into Portugal, Ireland, and Poland by year-end, its addressable market is growing exponentially. Meanwhile, Ilumetri® (tildrakizumab)—despite facing competition in psoriasis—maintains momentum, driven by a new 200 mg dosage format. The drug’s revised peak sales forecast of over €300 million underscores its staying power.

These products aren’t just incremental wins—they’re foundational pillars. Together, they’ve pushed European Dermatology sales to €139.4 million in Q1, outpacing the company’s already ambitious targets. But the real magic lies in Almirall’s execution: its ability to turn clinical innovation into commercial scale.

R&D Pipeline: From Phase II to Global Ambition

Almirall’s leadership isn’t accidental. Its R&D engine is firing on all cylinders, with catalysts coming thick and fast. The most notable? The anti-IL-1RAP monoclonal antibody, currently in Phase II trials for hidradenitis suppurativa. This rare, painful skin disease affects millions globally, and a successful trial could open doors to a market starved for effective treatments.

Equally compelling is Ebglyss’s expansion into new indications. A Phase III trial with Sun Pharma targeting psoriatic arthritis—a condition with significant unmet need—could extend its lifecycle and revenue streams. Add to this ongoing lifecycle management efforts for existing products, such as Wynzora® (tapinarof) and Klisyri® (tretinoin), and Almirall is building a moat that competitors can’t easily breach.

Financial Fortitude: EBITDA Growth and a Dividend Boost

Behind the clinical wins lies a balance sheet that’s equally compelling. EBITDA surged to €70.9 million in Q1, up 35% YoY, fueled by both top-line growth and operational discipline. Even excluding one-time gains from product out-licensing deals, the underlying EBITDA margin holds firm at 20%. Management has reaffirmed its 2025 guidance: 10–13% sales growth and EBITDA of €220–240 million.

Investors should also note the scrip dividend of €0.19 per share, approved in May 2025, signaling confidence in liquidity. With a net debt/EBITDA ratio of just 0.1x, Almirall has the financial flexibility to pursue licensing deals or bolt-on acquisitions that could supercharge growth.

Why Act Now? The Case for Immediate Investment

The numbers tell a clear story: Almirall is executing flawlessly. Its European dermatology dominance is real, its pipeline is loaded with near-term catalysts, and its financials are rock-solid. Consider these key advantages:

1. Market Leadership: With 4 of its top 5 products in growth mode, Almirall is outpacing peers in a space projected to grow at 6.5% CAGR through 2030.
2. Geographic Scalability: Ebglyss’s pending expansions into 5+ new markets by end-2025 could unlock €100+ million in incremental sales.
3. Pipeline Momentum: Phase II/III readouts for anti-IL-1RAP and psoriatic arthritis could deliver data catalysts in 2026, priming the stock for multiple upside surprises.
4. Valuation: At current levels, Almirall trades at just 12x forward EBITDA—a discount to peers despite its higher growth profile.

Risks? Yes—but They’re Manageable

No investment is risk-free. Regulatory delays for pipeline candidates, pricing pressures in Europe, or competition in psoriasis could pose headwinds. However, Almirall’s diversified portfolio, proven commercial execution, and strong cash flow position it to navigate these challenges better than most.

Final Verdict: A Dermatology Leader with Legs

Almirall isn’t just a dermatology player—it’s a strategic powerhouse leveraging biologics, geographic expansion, and R&D to build a decades-long franchise. With its stock up 7.8% pre-market on Q1 results, investors are already pricing in this outperformance. But the best is yet to come: 2025’s guidance, coupled with 2026’s pipeline readouts, positions this as a buy-and-hold opportunity with asymmetric upside.

For income-seeking investors, the dividend provides a floor; for growth investors, the pipeline offers a ceiling. Either way, Almirall’s combination of execution, innovation, and valuation makes it a must-own stock in dermatology. The question isn’t whether to buy—it’s how much.

Invest with conviction, but always do your own research. Market conditions can change rapidly.