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The truth is that Galderma has always been poorly managed - it’s EBIT was below 7% ( today probably 10 max), which is way below the 20/30% of the industry. In a normal situation, a company like that should have never existed .
All this magic and illusion was made possible thanks to Nestle- they paid so much to buy it from L’Oréal, they were convinced by Umberto when he said : « I’ll multiply the turnover by 3 in 10 years ».
When the new CEO of Nestle arrived, he cleaned everything- and suddenly, tadaaa: a goodwill recognition of 3Bi, and 2 years later the company is sold.
Flemming received a mandate from Dubai ( EQT), along with phantom shares, to bring Galderma in a healthy situation- remember that EQT acquired Galderma at 17 times the EBIT ( while it should be 7), the pressure is huge- he is late to deliver what he promised ( IPO in 5 years). As he cannot increase the sales, he decided ( my interpretation)to cut the costs massively. In his view: if IPO is not possible, at least, he can strip the asset of the company separately - this option is not possible with a heavy workforce.

A Top C level resigned recently ( those guys must be aware of smth), and a massive layoff plan is underway here in Switzerland.No one trust Flemming, and stress is high, also for people on this side of the world.
 




Unlike most of the folks who post on this site, you clearly know and work with Fleming on a daily basis so your update is appreciated. Here in the US Rx we still think it is salvageable if they acquire an asset that is novel.
 




Remember: Galderma’s valuation was $7.8-$8.2bn. Why EQT paid $10.2bn remains a mystery. To justify this price, high growth rates are needed driven by strong sales. Some markets are doing surprisingly well with >30%. Will it be enough to meet expectations?
A large bank loan needs to be paid back. The cash could come from the sale of the consumer business.

I confirm a social plan is in place in Switzerland due to massive layoffs.
 




The goal of private equity is to deliver growth to its investors. A $10.2b investment that is now worth $8b at best is not acceptable. Why the Board and EQT sit still is beyond us. Eliminating people will not make up the difference.
 




Nestle made loads of money, much more than the highest estimate when it sold Galderma to EQT. The question remains why EQT paid such a premium. Consumer is worth about $3.5bn, Aesthetic maybe $3.2bn and our generic prescription business $2.8bn at most. This is what EQT could get if the different business were to be spun off separately. EQT need in excess of $12bn to have any decent return on their investment. With no new products, competitive pressure increasing and low growth in many key markets, where is it going to come from?
 




Think after this year you would be lucky to get $1b for the Rx unless you are thinking Nemo has a $2b value by itself which is doubtful. Think they need to figure out how to get new products to drive IPO value.
 












Fleming and his crew had one job - grow the company and they failed miserably. They have no answers and no money so do not expect any changes - if you are looking for change, do what almost 25% of your colleagues have done over the past 12 months - leave.
 




anonymous said:
Fleming and his crew had one job - grow the company and they failed miserably. They have no answers and no money so do not expect any changes - if you are looking for change, do what almost 25% of your colleagues have done over the past 12 months - leave.
Click to expand...
The sales force is disgusted by what they’re doing. Any organization that’s turned the sales force into its enemy is finished. Even outside hiring firms are flagging Galderma as “avoid”.
 




anonymous said:
Fleming and his crew had one job - grow the company and they failed miserably. They have no answers and no money so do not expect any changes - if you are looking for change, do what almost 25% of your colleagues have done over the past 12 months - leave.
Click to expand...
In my team more than 50% have left or were made to leave. It‘s a disaster and there is no end in sight. Only way is out.
 




Rx has lost over 50% of their HQ team as they all saw what EQT was doing with the company. It's a shame as Galderma was among the best Derm companies for a long time but we failed to adopt and change. Good luck.
 












With legendary scum bags like Thomas Ebeling and Flemming Ornskov at the helm and their legion of suck up turds guiding Galdmera is it any wonder that this company is being destroyed?
 




















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