Galderma’s Double-Edged Growth: Blockbuster Launches Drive Record Q1 Sales and Confident Outlook

Galderma Group AG has delivered a stellar start to 2025, reporting record first-quarter net sales of $1.129 billion, a 8.3% year-on-year increase at constant currency. The dermatology leader’s performance was fueled by two high-potential launches—Nemluvio and Relfydess—and strategic execution across its three core categories: Injectable Aesthetics, Dermatological Skincare, and Therapeutic Dermatology. With full-year guidance reaffirmed, investors are taking note of this Swiss-based company’s momentum.

The Blockbuster Engines: Nemluvio and Relfydess

The star of the quarter was Nemluvio, Galderma’s first therapeutic dermatology product targeting atopic dermatitis and prurigo nodularis. With $39 million in sales in Q1, Nemluvio is already making waves. Its U.S. success, driven by direct-to-consumer campaigns and expanding commercial access, has been complemented by early European launches in Germany. Clinical data showcasing sustained efficacy up to 56 weeks reinforces its long-term potential.

Meanwhile, Relfydess, a next-generation neuromodulator, is positioning itself as a rival to Botox. Equipped with PEARL™ Technology for rapid onset and sustained efficacy, Relfydess has secured regulatory approvals in 15 European markets, Australia, and the U.K., with phased launches underway. Phase IIIb trial results demonstrating strong performance against frown lines and crow’s feet suggest this product could capture significant market share in the $5 billion global neuromodulator market.

Category Performance: Strength in Diversification

• Injectable Aesthetics grew 9.9% to $547 million, led by a 21.4% surge in neuromodulators. While Fillers & Biostimulators dipped 2.3% in the U.S. due to market softness and wildfires, International sales (excluding the U.S.) rose double digits.
• Dermatological Skincare hit $370 million, a 7.8% increase, fueled by Cetaphil’s new acne patches and Alastin’s rebranding efforts targeting younger demographics.
• Therapeutic Dermatology rose 4.9% to $212 million, with Nemluvio’s contributions offsetting declines in older, generic-threatened products.

Geographic Momentum: International Dominance and U.S. Resilience

Galderma’s International Markets (61.7% of sales) grew 10.4% to $697 million, with standout performances in China, Germany, and the U.K. These markets, underpenetrated in aesthetic and dermatological treatments, offer vast growth opportunities.

The U.S., while only growing 5% to $432 million, remains a critical market. Nemluvio’s success there, coupled with strong neuromodulator adoption, shielded the region from broader skincare softness.

Strategic Initiatives and Financial Outlook

Galderma’s Integrated Dermatology Strategy—combining innovation, education (via its SKIN™ network), and geographic diversification—appears to be paying off. The company reaffirmed its full-year targets of 10–12% net sales growth and a 23% Core EBITDA margin at constant currency, despite U.S. tariffs affecting ~9% of sales.

Risks and Mitigation

• Tariffs on Fillers/Biostimulators: While 9% of sales are exposed, Galderma plans to offset this via market share gains and tariff-exempt portfolios.
• Generic Competition: Mature products face headwinds, but new launches like Nemluvio and Relfydess are designed to counteract this.
• Consumer Demand Volatility: The Q1 overperformance provides a buffer, with growth expected to stay on track through product ramp-ups and geographic expansion.

Conclusion: A Pivotal Year for Galderma

Galderma’s Q1 results underscore its transition from a legacy skincare player to a dermatology powerhouse. With Nemluvio and Relfydess driving high-margin growth, and International markets offering scalable opportunities, the company is well-positioned to achieve its 10–12% sales growth target.

The reaffirmed 23% Core EBITDA margin reflects operational discipline, while new data from Sculptra and Restylane SHAYPE™ in emerging markets like China and Brazil signals further upside. At constant currency, the company’s growth trajectory appears resilient—even in a challenging macroeconomic environment.

Investors should take note: Galderma’s blend of innovation, geographic diversification, and a robust pipeline makes it a compelling play in the dermatology space. With a stock price that has risen ~15% year-to-date (as of April 2025), the question now is whether the market has fully priced in this potential—or if there’s more room to grow.

The verdict? For those willing to bet on Galderma’s strategic execution and product pipeline, the fundamentals are strong. The next few quarters will hinge on Relfydess’s European rollout, Nemluvio’s global adoption, and the company’s ability to navigate tariffs—a challenge it seems prepared to meet.