The Nestlé and L’Oréal boards of directors approved the decision in which L’Oréal would buy back 48.5 million of its own shares (8% of its share capital) from Nestlé, which was partially financed through the sale of its 50% stake in Galderma.
Said Nestlé chairman Peter Brabeck-Letmathe, by “creating Nestlé Skin Health S.A. and by leveraging Galderma’s current portfolio, formulations and innovative research, Nestlé will now be able to provide science-based solutions for skin conditions. We strive to have a portfolio of innovative products that meet the full spectrum of people’s skin health needs over the course of their lives and to provide a holistic approach to people’s health.”
Brabeck-Letmathe also said Nestlé Skin Health will “allow the emergence of a global leader that will leverage Galderma’s and Nestlé’s commercial operations throughout the world.”
Galderma’s scientific division, with laboratories in France, Sweden, US, Japan and Switzerland, will become part of Nestlé Skin Health and will actively collaborate with Nestlé’s global R&D network. Galderma’s 33 commercial subsidiaries will continue to deliver products to patients and healthcare providers around the world under the Galderma brand and organization, according to Nestlé. Nestlé Skin Health S.A. will be managed as a wholly-owned subsidiary of Nestlé S.A., with its own board of directors located in Lausanne.
Humberto C. Antunes, who currently serves as president and CEO of Galderma, will lead Nestlé Skin Health reporting to the company’s new board of directors. Brabeck-Letmathe will become chairman and Paul Bulcke will serve as vice chairman of the new board of directors of Nestlé Skin Health.
“This is good news for patients, consumers and healthcare providers, and the thousands of Galderma employees throughout the world,” said Antunes. “As part of Nestlé Skin Health, Galderma’s medical heritage and portfolio can be expanded to meet the full range of skin health needs, creating a new world leader focused on improving people’s lives.”
Nestlé Skin Health will have a full range of products for the skin, hair and nail including self-medication drugs, quasi-drugs such as medicated soaps or sunscreens, therapeutic skin care products, nutraceuticals, prescription drugs and medical devices. Nestlé’s Bübchen line of baby care products will also be part of Nestlé Skin Health.
Galderma’s strategic brands include Epiduo, Oracea, Clobex, Differin, Mirvaso, Rozex/MetroGel, Silkis/Vectical, Tri-Luma, Loceryl, Metvix, Azzalure, Restylane and Emervel, as well as Cetaphil in the consumer marketplace.