Galderma lifts sales outlook after H1 beat on Nemluvio strength

Investing.com -- Galderma Group AG shares traded higher on Thursday after the Swiss dermatology group beat consensus estimates on every tracked metric in the first half of 2026 and raised its full-year sales outlook, but the stock reversed course to trade lower as the session progressed, falling 1.1%.

Morgan Stanley, which rates the stock “equal-weight” with a 160-franc price target, called the print a "strong beat and sales guide raise."

The broker said it expects Galderma shares to outperform and views the guidance raise as "a positive surprise" given the regulatory setback on Relfydess earlier this month, adding that first-half momentum suggests "Galderma is likely to achieve the top-end or beat the updated guidance."

RBC Capital Markets separately called the results "a strong set" likely to be taken positively.

First-half net sales reached $3.13 billion, above the $3.06 billion consensus, with constant-currency growth of 24.6% versus 22.3% expected. 

Second-quarter net sales of $1.66 billion beat the $1.59 billion consensus, up 23.8% at constant currency against 19% expected. 

Morgan Stanley pegged the quarterly beat at 4%, driven largely by injectable aesthetics and Nemluvio. 

The neuromodulator franchise beat consensus by 4% and is gaining share in the U.S. and abroad, the bank said, while fillers and biostimulators came in 1% ahead, with softness in the broader filler market offset by double-digit Sculptra growth. Dermatological skincare was roughly in line, aided by Cetaphil and Alastin.

Core first-half EBITDA was $802 million versus $768 million expected, a 25.6% margin, up 328 basis points at constant currency, helped by expense phasing and a one-time tariff refund. 

Core net income of $547 million beat by 12%, aided by lower financing costs following a March Eurobond refinancing, with core EPS of $2.34, up 68.5%.

Nemluvio was the standout, generating $248 million in second-quarter sales, a 12% beat and a 34% sequential jump from $185 million in the first quarter.

First-half Nemluvio sales totaled $433 million versus $131 million a year earlier, for the first time contributing more than half of Therapeutic Dermatology sales.

In the U.S., Nemluvio’s share of new patient starts from mid-June to early July was roughly 42% in prurigo nodularis and 9% in atopic dermatitis. Therapeutic Dermatology overall grew 65.2% at constant currency, versus 53.9% expected.

On July 1, Galderma received a Complete Response Letter from the FDA for RelabotulinumtoxinA over manufacturing-site and analytical-method observations. 

The company said it does not expect this to affect its 2023-2027 mid-term guidance; RBC flagged the timeline for addressing the CRL as a focus for Thursday’s call.

Galderma raised its 2026 constant-currency sales growth guidance to 19-21%, from 17-20%, and confirmed a core EBITDA margin of roughly 26%. Morgan Stanley said the midpoint implies little change to consensus but expects estimates to settle at the top end. Mid-term guidance beyond 2027 is now delayed to the first quarter of 2027 because of the CRL.

CEO Flemming Ørnskov said Galderma "delivered a strong first half of 2026, with broad-based growth across geographies and product categories."