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: