L’Oréal Bets Big on Skin Science, Shares Dip Amid Galderma Stake Increase

PARIS — French beauty giant L’Oréal is doubling down on its investment in the science-backed skincare market, announcing a further increase in its stake in Swiss dermatology company Galderma. The move, while signaling confidence in the future of aesthetic medicine, triggered a slight dip in L’Oréal’s share price Tuesday morning on the Paris stock exchange.

Strategic Expansion into Aesthetic Dermatology

L’Oréal plans to acquire 24 million additional shares in Galderma from a consortium led by Swedish private equity group EQT, boosting its ownership to 20%. The deal, expected to close in the first quarter of 2026, will also likely see L’Oréal nominate two representatives to Galderma’s board, replacing those from the EQT-led group. Financial details of the transaction remain undisclosed.

“Our initial strategic investment in Galderma in 2024 has been very successful, leading us to deepen and broaden our collaboration,” said L’Oréal CEO Nicolas Hieronimus in a statement. While L’Oréal maintains it has no current plans for further share increases, the move underscores its ambition in the rapidly growing aesthetic dermatology sector.

Galderma’s Growth and Innovation

Galderma CEO Flemming Ørnskov welcomed the increased investment, stating it validates the company’s direction and projected future value. “Galderma continues to deliver strong growth, driven by our innovation and category leadership across a broad portfolio of science-based dermatological products,” Ørnskov said.

The investment aligns with L’Oréal’s broader strategy to explore the aesthetica market – a segment focused on medical aesthetics and cosmetic dermatology. Globally, the aesthetic medicine market is projected to reach USD 22.98 billion by 2030, according to Grand View Research, driven by increasing consumer demand for non-invasive cosmetic procedures and a growing awareness of skin health.

A History of Partnership

L’Oréal’s connection to Galderma dates back to 1981, when the companies were jointly founded with Nestlé. Nestlé acquired full ownership in 2014 before selling Galderma to EQT in 2019. L’Oréal initially re-entered the picture last year, acquiring a 10% stake valued at approximately €1.7 billion. This initial investment signaled a clear interest in cutting-edge beauty technologies, particularly within the aesthetic dermatology space.

L’Oréal’s existing dermatology portfolio includes popular brands like La Roche-Posay and CeraVe, which have benefited from the rising popularity of science-backed skincare, fueled in part by social media trends and influencer endorsements. A recent study by the National Institutes of Health highlights the significant impact of social media on consumer skincare choices, with 70% of respondents reporting being influenced by online content.

Expanding the Beauty Empire

This deal with Galderma is the latest in a series of acquisitions for L’Oréal. In October, the company announced the acquisition of Kering’s beauty businesses, including the renowned fragrance house Creed. L’Oréal also secured 50-year licensing agreements for several of Kering’s iconic brands, including Gucci, Bottega Veneta, and Balenciaga. Other recent additions to the L’Oréal portfolio include UK skincare brand Medik8 and Australian soap maker Aesop.

“L’Oréal is strategically positioning itself not just within traditional beauty, but at the forefront of innovation in scientifically-driven areas like aesthetic dermatology and medical cosmetics,” explains Dr. Anya Sharma, a leading dermatologist and skincare industry analyst. “This is a smart move, as consumers are increasingly seeking evidence-based solutions for their skin concerns.”

The company’s aggressive acquisition strategy demonstrates a commitment to diversifying its portfolio and capitalizing on emerging trends in the global beauty market.