Galderma acquires clinical brand Alastin Skincare ahead of potential IPO

Galderma acquires clinical brand Alastin Skincare ahead of potential IPO

On Monday, Swiss dermatology and aesthetics company Galderma announced the intent to acquire Alastin Skincare, amid a rush of recent acquisitions across the beauty industry.

Galderma is the owner of skin-care brands like Cetaphil and Proactiv, as well as aesthetic injectables Dysport and Restylane. Galderma is expected to conduct an initial public offering next year in Zurich at a valuation of $22 billion, according to the Financial Times. Meanwhile, Alastin Skincare was founded in 2015 and focuses on products that optimize aesthetic injectables and non-invasive skin procedures. It is distributed through 3,000 U.S. physician offices and direct-to-consumer e-commerce. Terms of the deal were not disclosed, but Alastin Skincare is expected to earn $50 million in 2021 sales, according to Diane Goostree, president and CEO at Alastin Skincare. Goostree will report to Flemming Ørnskov, CEO and interim CCO at Galderma.

“We’re looking forward to collaborating on a scientific basis with Galderma. Galderma has much better insight into what is happening with fillers and toxins, and even with energy-based devices and non-energy-based devices in the aesthetics area,” said Goostree. “We see a lot of opportunities for cross-promotion and to learn from Galderma on what they see as the unmet needs in the aesthetic market.”

According to a Goostree, Galderma plans to help Alastin expand its reach and strengthen sales further in the U.S., before looking at opportunities for growth internationally. She also added that Alastin can piggyback off of Galderma’s outsized presence at medical conferences, and better share its innovations and patented products with medical providers.

Clinical products have regained favor among consumers since 2020, after years of trends favoring clean and organic brands. Goostree pointed out that younger customers have increasingly adopted the use of aesthetic injectables, either for anti-aging aging or aesthetic purposes, which has increased the adoption of clinical brands to complement those procedures. Alastin customers are 25- to 45-years-old on its DTC channel and 30- to 50-years-old in its physician sales channel.

Galderma does not have its own clinical skin-care brand that complements its aesthetic procedures services, unlike direct competitor AbbVie, which owns Allergan and its skin-care brand Skinmedica. Goostree said Obagi and L’Oréal-owned Skinceuticals are also Alastin competitors. Prior to the acquisition announcement, Alastin did have a prior relationship with Galderma for co-branded promotions, including the launch of injectable product Restylane Kysse in June 2020, where Alastin provided a post-injection serum that helps reduce swelling and bruising.

“Alastin’s differentiated technology synergizes strongly with our own portfolio … for daily skin-care regimens and peri-procedural use to Galderma’s premium aesthetic portfolio,” said a Galderma spokesperson in a written comment to Glossy. “The potential acquisition increases our ability to serve the needs of consumers and underscores our commitment to being the partner of choice for aesthetic professionals.”

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