Tom Branna, Editorial Director06.26.23
Obagi may be 35, but the company shows no signs of a middle-age crisis. New product launches, new distribution and new owners keep this physician-backed brand front-and-center with dermatologists and their patients.
To celebrate its anniversary, Obagi invited influencers and journalists to Brooklyn, NY to learn more about its special relationship with the medical community. Obagi CEO and President Jaime Castle hosted the event, which included a panel discussion with board-certified dermatologists, who discussed why they prefer recommending Obagi products to their patients.
After three years of a pandemic, you’d think consumers would lose patience with being patients. Not when it comes to skincare and dermatology. According to Obagi executives, demand for dermatological services soared during covid-19 and continued to grow as restrictions eased.
“We are a physician-first brand,” asserted Castle, who describes the Obagi customer as being 41 years old, who sees a dermatologist on a regular basis.
“For 35 years we have stayed true to our ‘medical DNA’ skincare. It is transformational skincare,” Castle added.
That kind of commitment got the attention of Waldencast, which acquired Obagi and Milk Makeup a year ago. Waldencast Founder and CEO Michel Brousset said the platform is built speed and scale. Bringing the best of both words - the agility, consumer centricity and speed of indie brands with the operational know-how and scale capabilities of a strategic.
“We have a balanced portfolio of high-growth, attractive, and resilient brands – which favors our growth ambitions and mitigates risk linked to single category fluctuations,” said Brousset. “We have expertise in managing and scaling beauty brands, and we intend to do this with an asset light model and the agility to respond quickly given we are made up of entrepreneurial indie brands.”
Brousset’s experience includes 25 years in the fast-moving consumer goods business. After time at Procter & Gamble, he moved on to L’Oréal, where he was CEO of L’Oréal UK and later, president of the consumer product division for North America.
What makes for a successful company in today’s competitive beauty landscape? Brousset says it’s about venturing beyond outdated notions of beauty and building businesses and brands that are more connected to the values of consumers; that is, more responsible, sustainable and inclusive.
“But ultimately, all successes in beauty rely on what we call the perfect union of dreamers and makers – the ability to imagine and bring to life a brand that uniquely connects with consumers and the operational expertise to make it a viable, high growth, profitable business,” he told Happi.
Waldencast hasn’t released 2022 sales results—company execs say the holdup is due to a review by its auditor and independent outside counsel pertaining to, among other things, certain accounting issues in connection with the sale of certain Obagi Cosmeceuticals LLC products for the Vietnam market. More than a year ago, the company said it expected 2022 sales to top $256 million. It reaffirmed that view at the end of Q3 2022. As the world waits for fiscal 2022 results, the company has been active in new product developments. Castle told Happi the goal is to launch two or three new products every year.
Obagi recently expanded its Elastiderm franchise from face and eye to the neck and decollete. Like other Elastiderm products, the new offerings are said to help support skin elasticity so that it can bounce back from signs of aging. The formula contains Obagi’s patented Bi-Mineral Contour Complex, which combines copper, zinc and malonate to develop healthy elastin. The result? Firmer-looking, more resilient skin after eight weeks, according to the company. In clinical tests:
• 97% of participants showed visible improvement to horizontal lines on the neck;
• 97% showed visible improvement to fine lines on the neck;
• 81% showed visible improvement in skin sagging on the neck; and
• 100% showed visible improvement in crepiness on the neck.
“We created a formula that improves elasticity,” said Castle. “This formula is different than anything on the market. When we expand, we compete to win.”
The Elastiderm line already includes facial serum, eye cream and eye serum.
Another winning new product, launched in 2022, is NuCil Eyelash Enhancing Serum. The formula contains the patented NutriPlex technology which combines biotin to promote keratin production; a proprietary compound that targets the anagen phase of the lash cycle; sodium hyaluronate to nourish lashes and boost moisture; and panthenol to hydrate and soften lashes.
With daily use, the formula is said create thicker, more luxurious lashes. In clinical trials, after 16 weeks of use:
• 93% of participants said their lashes showed visible improvement;
• 89% said their lashes looked thicker; and
• 89% said their eyelashes looked more densely packed.
According to Obagi, NuCil Eyelash Enhancing Serum outperformed a leading competitor in as early as eight weeks.
According to the American Academy of Dermatology, acne is the most common skin condition in the US, affecting up to 50 million Americans a year. Castle says that’s one reason why Obagi is focused on delivering visible results to consumers.
“Consumers are savvier than ever; they’re focusing on clinical study results,” she noted. “Consumers are watching what brands claim. We know we can’t rewind the clock, but we can produce transformative results regarding skin conditions such as acne.”
Obagi’s ClenziDerm MD Acne Therapeutic System is a three-step acne treatment formulated to help combat acne and, with daily use, help prevent acne from forming. The formula includes benzoyl peroxide and salicylic acid. If skin gets too dry, the company recommends its ClenziDerm MD Therapeutic Moisturizer, a glycerin-based formula that keeps skin hydrated and protected during treatment.
Despite all the NPD, Obagi’s best-known brand remains Nu Derm. It debuted in 1988 and remains the gold standard for treating hyperpigmentation, according to Castle. The Nu Derm collection is available by prescription only and contains up to 4% hydroquinone.
Obagi recently moved its corporate headquarters from California to Texas. But no matter where headquarters are located, Obagi’s commitment to dermatologists remains unshakable. The brand is in 6,000 locations in the US and available in more than 60 countries.
“Obagi works. That’s what dermatologists tell us,” concluded Castle. “We’ll always be a physician-first brand.”
Ed. Note: For more on Obagi, be sure to read The Top 50, Happi's annual look at the biggest US-based companies in the global household and personal products industry. The Top 50 appears in the July issue of Happi.
To celebrate its anniversary, Obagi invited influencers and journalists to Brooklyn, NY to learn more about its special relationship with the medical community. Obagi CEO and President Jaime Castle hosted the event, which included a panel discussion with board-certified dermatologists, who discussed why they prefer recommending Obagi products to their patients.
On a Growth Trajectory
After three years of a pandemic, you’d think consumers would lose patience with being patients. Not when it comes to skincare and dermatology. According to Obagi executives, demand for dermatological services soared during covid-19 and continued to grow as restrictions eased.
“We are a physician-first brand,” asserted Castle, who describes the Obagi customer as being 41 years old, who sees a dermatologist on a regular basis.
“For 35 years we have stayed true to our ‘medical DNA’ skincare. It is transformational skincare,” Castle added.
That kind of commitment got the attention of Waldencast, which acquired Obagi and Milk Makeup a year ago. Waldencast Founder and CEO Michel Brousset said the platform is built speed and scale. Bringing the best of both words - the agility, consumer centricity and speed of indie brands with the operational know-how and scale capabilities of a strategic.
“We have a balanced portfolio of high-growth, attractive, and resilient brands – which favors our growth ambitions and mitigates risk linked to single category fluctuations,” said Brousset. “We have expertise in managing and scaling beauty brands, and we intend to do this with an asset light model and the agility to respond quickly given we are made up of entrepreneurial indie brands.”
Brousset’s experience includes 25 years in the fast-moving consumer goods business. After time at Procter & Gamble, he moved on to L’Oréal, where he was CEO of L’Oréal UK and later, president of the consumer product division for North America.
What makes for a successful company in today’s competitive beauty landscape? Brousset says it’s about venturing beyond outdated notions of beauty and building businesses and brands that are more connected to the values of consumers; that is, more responsible, sustainable and inclusive.
“But ultimately, all successes in beauty rely on what we call the perfect union of dreamers and makers – the ability to imagine and bring to life a brand that uniquely connects with consumers and the operational expertise to make it a viable, high growth, profitable business,” he told Happi.
Waldencast hasn’t released 2022 sales results—company execs say the holdup is due to a review by its auditor and independent outside counsel pertaining to, among other things, certain accounting issues in connection with the sale of certain Obagi Cosmeceuticals LLC products for the Vietnam market. More than a year ago, the company said it expected 2022 sales to top $256 million. It reaffirmed that view at the end of Q3 2022. As the world waits for fiscal 2022 results, the company has been active in new product developments. Castle told Happi the goal is to launch two or three new products every year.
New Obagi Product Launches
Obagi recently expanded its Elastiderm franchise from face and eye to the neck and decollete. Like other Elastiderm products, the new offerings are said to help support skin elasticity so that it can bounce back from signs of aging. The formula contains Obagi’s patented Bi-Mineral Contour Complex, which combines copper, zinc and malonate to develop healthy elastin. The result? Firmer-looking, more resilient skin after eight weeks, according to the company. In clinical tests:
• 97% of participants showed visible improvement to horizontal lines on the neck;
• 97% showed visible improvement to fine lines on the neck;
• 81% showed visible improvement in skin sagging on the neck; and
• 100% showed visible improvement in crepiness on the neck.
“We created a formula that improves elasticity,” said Castle. “This formula is different than anything on the market. When we expand, we compete to win.”
The Elastiderm line already includes facial serum, eye cream and eye serum.
Another winning new product, launched in 2022, is NuCil Eyelash Enhancing Serum. The formula contains the patented NutriPlex technology which combines biotin to promote keratin production; a proprietary compound that targets the anagen phase of the lash cycle; sodium hyaluronate to nourish lashes and boost moisture; and panthenol to hydrate and soften lashes.
With daily use, the formula is said create thicker, more luxurious lashes. In clinical trials, after 16 weeks of use:
• 93% of participants said their lashes showed visible improvement;
• 89% said their lashes looked thicker; and
• 89% said their eyelashes looked more densely packed.
According to Obagi, NuCil Eyelash Enhancing Serum outperformed a leading competitor in as early as eight weeks.
According to the American Academy of Dermatology, acne is the most common skin condition in the US, affecting up to 50 million Americans a year. Castle says that’s one reason why Obagi is focused on delivering visible results to consumers.
“Consumers are savvier than ever; they’re focusing on clinical study results,” she noted. “Consumers are watching what brands claim. We know we can’t rewind the clock, but we can produce transformative results regarding skin conditions such as acne.”
Obagi’s ClenziDerm MD Acne Therapeutic System is a three-step acne treatment formulated to help combat acne and, with daily use, help prevent acne from forming. The formula includes benzoyl peroxide and salicylic acid. If skin gets too dry, the company recommends its ClenziDerm MD Therapeutic Moisturizer, a glycerin-based formula that keeps skin hydrated and protected during treatment.
Despite all the NPD, Obagi’s best-known brand remains Nu Derm. It debuted in 1988 and remains the gold standard for treating hyperpigmentation, according to Castle. The Nu Derm collection is available by prescription only and contains up to 4% hydroquinone.
Obagi recently moved its corporate headquarters from California to Texas. But no matter where headquarters are located, Obagi’s commitment to dermatologists remains unshakable. The brand is in 6,000 locations in the US and available in more than 60 countries.
“Obagi works. That’s what dermatologists tell us,” concluded Castle. “We’ll always be a physician-first brand.”
Ed. Note: For more on Obagi, be sure to read The Top 50, Happi's annual look at the biggest US-based companies in the global household and personal products industry. The Top 50 appears in the July issue of Happi.