Top Companies Report

47. Obagi

July 12, 2011

Long Beach, CA


Sales: $112 million


$112 million. Net income: $9.5 million.

Key Personnel:

Albert F. Hummel, president and chief executive officer; Preston S. Romm, chief financial officer; James P. Hartman, vice president, global marketing and business development; David S. Goldstein, executive vice president, global sales and field marketing; Laura B. Hunter, vice president, general counsel and secretary.

Major Products:

Dermatologist-based skin care systems including Nu-Derm, Professional-C, Elastiderm, Condition and Enhance, Clenziderm and Rosaclear.


Sales rose more than 8% last year, but net income dropped nearly 16%. The company blamed the decline in profit to selling, general and administrative expense.

Women of color have unresolved skin challenges, according to the results of consumer poll released by Obagi last month. The company surveyed more than 1,000 women within the wide range of “skin of color.” The results indicated that regardless if a woman is of African-American, Hispanic, Asian or Middle Eastern descent, one thing holds true: she most likely has unresolved skin challenges.A prominent concern among women with skin of color is related to pigment. Obagi found that while 47% see a dermatologist for dark spots, uneven skin tone or hyperpigmentation, just 11% of those surveyed women expressed a strong familiarity with hydroquinone. In, fact, 61% of the women were not at all familiar with the ingredient and 58% of surveyed women say they struggle to find skin care products that meet their needs, suggesting an opportunity to further educate consumers about available treatments. Furthermore, even when they have found products they are willing to purchase less than half of those polled (47%) said their current regimen meets their expectations, despite the fact that most of the women (52%) spent more than $100 on skin care products in the last year.

Obagi also uncovered a lack of concern over one of the most common causes of discoloration: sun exposure. Most of the women surveyed claim to wear a sunscreen with an SPF rating of at least 15 every day; however 16% of those who don’t wear sunscreen believe it’s not important for skin of color.

“Obagi Medical commissioned this poll to help us better understand the needs and concerns of our consumers,” Jim Hartman, VP-global marketing and business development said. “The results indicate to us that we have an opportunity and obligation to educate women about the treatments that are available for many of the skin conditions noted; and that partnering with a physician is critical in achieving desired results.”

Related End-User Markets:

blog comments powered by Disqus
  • Patent Update

    Patent Update

    June 30, 2016
    J&J's anti-aging patent, LVMH and cannabis essential oil, transdermal botulinum toxins and more in recent patent news.

  • Start Stuffing The Ballot Box (Again)!

    Start Stuffing The Ballot Box (Again)!

    June 28, 2016
    Vote on the finalists in Happi's reader's choice Anti-Aging Product of the Year contest!

  • What

    What's Next for the UK?

    Sarah Boumphrey, Euromonitor International||June 27, 2016
    Euromonitor weighs in on how Brexit could impact consumer product companies.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.