Expanding its presence in dermatology, Cetaphil maker Galderma has agreed to acquire professional skincare shop Zo Skin Health for $1.5 billion.
The all-cash transaction is designed to bolster Galderma’s footprint in the medical-grade skincare market, complementing its Alastin brand of peptide-based regenerative offerings with Zo’s multi-step, retinol- and acid-based regimens. While Alastin is used around surgery, Zo’s products focus on daily care.
The deal comes with a portfolio of more than 40 products and approximately $330 million in revenue over a 12-month period by June 2026. Zo sells through a network of more than 16,500 accounts of doctors, medical spas and online, and its portfolio is manufactured in the U.S., Galderma noted.
The Zo brands will join Galderma’s dermatological skincare business, which includes Alastin and Cetaphil. Last year, the portfolio generated $1.45 billion in sales, up 9% year over year.
In an Oct. 14 statement, Galderma CEO Flemming Ørnskov, M.D., labeled the acquisition as “another important step” toward strengthening the company’s dermatology portfolio, where it already has significant capabilities.
“Zo Skin Health brings strong clinical credentials, a distinctive protocol-based approach and a trusted position among dermatologists and plastic surgeons,” he added. “We see significant opportunities to reignite its growth through investment in innovation and commercial reach.”
The deal should be well-received, Jefferies analysts wrote in an Oct. 14 note. It “meaningfully expands Galderma’s exposure to the physician-dispensed/medical-grade skincare channel, while giving Zo access to Galderma’s broader commercial, education and geographic infrastructure,” the team wrote.
Galderma expects the deal to close this year or early 2027. The Swiss company intends to increase commercial investment during the first year of ownership, with the goal to achieve “renewed growth” beginning in 2028.
The acquisition comes as Galderma is working to resolve a recent FDA complete response letter for its Botox rival Relfydess in the company’s injectable aesthetics business. The rejection was related to observations during a manufacturing site inspection, and the FDA also requested Galderma optimize its analytical methods.
In the third pillar of Galderma’s business, therapeutic dermatology, the company in 2024 introduced Nemluvio, an antibody competitor to Sanofi and Regeneron’s blockbuster Dupixent. Buoyed by strong update in atopic dermatitis, Galderma in March doubled Nemluvio’s peak sales projection to over $4 billion.