Galderma's ZO Skin Health Deal Seen as Sensible Bolt-On by Analysts

what happened

Analysts at RBC Capital Markets, Harry Sephton and Mia Pachansky, describe Galderma's purchase of ZO Skin Health as a sensible bolt-on acquisition that strengthens the company's dermatological skincare portfolio. They expect the deal to reinforce its position in the physician-dispensed channel.

The RBC analysts add that Galderma's current cash generation and robust operating leverage could make mergers and acquisitions a strategic growth driver over the midterm. Vontobel analysts also see the agreement as both strategic and financially sound, saying the complementary portfolios should help sustain growth in the long term. The views come from Market Talk.

why it matters

The deal signals that the Swiss skincare maker sees acquisitions as a way to expand without taking on large risks. When reported, shares were down 0.27% at 166.9 Swiss francs in one note and 0.24% at 166.95 francs in another, a small move that does not by itself show how the market judged the deal.

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