Galderma Group (GALD) Partnership summary

Strategic partnership and shareholder update

• Signed a memorandum of understanding for a new scientific and R&D partnership, with L'Oréal acquiring a 10% minority stake at an undisclosed premium from EQT and other shareholders.

• The partnership aims to leverage complementary expertise in skin biology, diagnostics, dermatological skincare, and aesthetics to drive innovation and expand product portfolios.

• Both companies will maintain operational and strategic independence, with no changes to board composition or governance anticipated.

• L'Oréal agreed to customary standstill and tender obligations, reflecting a minority, non-controlling position, with no path to increased influence or board representation.

• The transaction is expected to close in the coming days, further strengthening the shareholder base post-IPO.

R&D collaboration scope and focus

• The R&D collaboration is at an early stage, with the scope yet to be finalized, but aims to develop new products and tools benefiting both companies.

• Both parties will remain competitors in overlapping areas, but see significant mutual benefit in shared innovation, especially in dermatology and aesthetics.

• The integrated R&D approach will involve both consumer and therapeutic dermatology, with project selection still pending.

• No changes to R&D expenditure guidance are planned; the partnership will be prioritized within existing frameworks.

• The collaboration is seen as a strong endorsement of the company's innovation strategy and scientific capabilities.

Growth and innovation focus

• The partnership is positioned to leverage both companies' expertise and reach in fast-growing, consumer-focused segments of dermatology and beauty.

• The company continues to invest in R&D, strengthening its innovation pipeline across Injectable Aesthetics, Dermatological Skincare, and Therapeutic Dermatology.

• The integrated dermatology strategy and single R&D engine are highlighted as key differentiators and attractive features for L'Oréal.

• The company remains focused on advancing its innovation pipeline and maintaining category leadership in dermatology.

• Galderma's integrated dermatology strategy is underpinned by scientific differentiation and a proven growth track record.