Galderma will have to wait for U.S. approval of its Relfydess neuromodulator, a rival to Botox, and this will hurt its midterm profitability prospects, RBC Capital Markets' Natalia Webster and Charles Weston say in a research note. The U.S. Food and Drug Administration's rejection will likely have a limited impact on the Swiss skin-care specialist this year, but the midterm profit-margin hit is more relevant, the analysts say. "We have previously highlighted Relfydess as a key driver to midterm margin expansion due to its superior economics to [predecessor product] Dysport--with lower royalty burden and internal manufacturing--, and a further approval delay pushes back the point at which these benefits begin to accrue in the U.S.," the analysts add. Galderma shares fall 4.7%. (adria.calatayud@wsj.com)
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Galderma's U.S. Relfydess Setback Weighs on Midterm Profitability Outlook — Market Talk
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Galderma will have to wait for U.S. approval of its Relfydess neuromodulator, a rival to Botox, and this will hurt its midterm profitability prospects, RBC Capital Markets' Natalia Webster and Charles Weston say in a research note. The U.S. Food and Drug Administration's rejection will likely have…