Dermatology specialist Galderma has hopped on the U.S. manufacturing bandwagon, revealing a commitment to spend more than $650 million through 2030 as it taps domestic contractors to produce newly approved Nemluvio and other skincare treatments in its portfolio.
The outlay is another step for Galderma in building its U.S. presence across various business functions. Four months ago, the 44-year-old Swiss company opened its U.S. headquarters in Miami. Galderma also has an R&D hub in Boston, two facilities in the Dallas-Fort Worth area and an outlet in Carlsbad, California.
The planned manufacturing spending will increase Galderma’s ability to supply its treatments through U.S.-based contractors. In Florida, Galderma’s partner will ramp up final assembly and packaging of Nemluvio, which has been in high demand since it was endorsed last year by the FDA. The investment will also bolster U.S. contract production of skincare treatments Alastin and Cetaphil, the company said.
Additionally, Galderma is ramping up technology transfers to the U.S. for the production of aesthetic treatments, including the neuromodulator Relfydess for frown lines and crow’s feet, a potential competitor to AbbVie’s Botox. The drug launched in Europe this year but has been delayed in the U.S. by manufacturing issues for two years.
Galderma revealed its spending pledge alongside its quarterly earnings report. Through the first nine months of this year, the company has generated record revenue of $3.7 billion. As a result, Galderma has jacked up its annual growth guidance to a range of 17% to 17.7%, which is up from its earlier 12% to 14% projection.
Much of the uptick can be attributed to the successful launch of Nemluvio, which accounted for sales of $263 million in the first three quarters of the year, including $131 million in Q3. It was a particularly significant haul considering Nemluvio has been on the market for only 14 months after its approval in the U.S. for prurigo nodularis (PN) in August of last year, with an expansion to treat eczema following in December. Regulators in Europe signed off on Nemluvio in both indications in February of this year.
The company said most of the early sales for the injected IL-31 treatment were to PN patients, but in the third quarter, sales for atopic dermatitis—where there is a larger market opportunity—overtook those for PN.
The uptake “continues to surpass expectations, underpinned by growing demand and increased access,” Galderma CEO Flemming Ornskov, M.D., said on a conference call.
As for U.S. tariffs, Galderma's chief financial officer, Thomas Dittrich, said the company’s exposure is "already in effect and seems manageable.” He added that tariffs largely affect the company’s filler and biostimulator portfolio, which accounts for 7% of Galderma’s net sales.