Galderma to be the latest healthcare IPO

Swiss-based derma specialist Galderma, which was spun out of Nestlé in 2019, is in talks with international investors, and banks have been appointed for a potential US$22bn initial public offering in H1 2022, reports the UK Financial Times. According to CEO Flemming Ornskov, bumper growth owing in part to the pandemic has led to accelerated strategic planning.

He added: “Digitalisation and social media have underscored something that was always part of this [business] — the emotional part. The skin is the largest organ in the body and we look at it every day. We react to it. We look at people and their skin and we judge whether they are healthy or in a good mood … Many hours spent on screens have reinforced that.”

Nicholas Hall commented: Galderma has been an outstanding success story since the company was sold by Nestlé in 2019 to three private equity companies led by EQT. We can’t rule out Galderma’s being taken over in a very lucrative acquisition, which was the fate of Shire, whose CEO, Flemming Ornskov, is now the CEO of Galderma. More likely there will be an IPO as a stepping-stone to a full listing, which makes perfect sense.

Private equity has been a significant player in the CHC market in the past ten years, but the question is always, “What next?” In some instances, private equity has sold on to a strategic buyer, as happened recently when HRA was acquired by Perrigo and The Bountiful Company was sold to Nestlé. Often private equity sells to another financial institution when it closes its fund after 5-7 years, but sometimes the asset is too big to sell on, and that is when an IPO is contemplated. Galderma is a case in point, and I’m sure the PE owners of Stada will be looking at this option very carefully.

With just over a week to go until our APAC e-Conference 2021take the opportunity to register while spaces are still available! Alongside Nicholas and the team, a panel of industry experts will host sessions on key topics including digital trends, e-Commerce, consumer / patient centricity, plus much more! For further details, or to book your place, please contact elizabeth.bernos@NicholasHall.com without delay.

OTCs in Action Episode 15: E-Commerce excitement in China

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Online purchases of OTCs in China are in action, according to James Fan, CEO, JOWIN China Group and Nicholas Hall’s Network Partner.

In 2014, Alibaba issued the world’s largest IPO (raising funds of US$25bn), increased its investment in its pharma dispensing e-business and aggressively developed 
its online healthcare shopping arm. It also supported many cloud-based health projects and encouraged traditional distributors to develop their online businesses.

“Double-digit growth of OTCs online and a rise of 20% among big brand nutritionals and cosmeceuticals proves that Chinese consumers are convinced by e-healthcare product providers. Tmall – operated by Alibaba – reported the Top 3 brands purchased on its site last year were Dong-e E-Jiao (Dong-e E-Jiao Group), Caltrate-D (Pfizer) and Fupai E-Jiao (Shandong Fujiao), which grew on average by more than 30% vs 2013. All three products have numerous line extensions that meet a range of daily healthcare needs. Regulations are set to allow the online prescription market to open up, too. Meanwhile, we believe the next digital healthcare hotspot in China will be at-home devices that can be used alongside online and mobile technology.