Chief Executive Officer (Chair of Executive Committee), Galderma Group AG
Meet Galderma's New CEO — Dr. Flemming Ørnskov
Since its formation in 1981, Galderma and its skincare brands have been mainstays of the dermatology world.
Originally formed as a joint venture between Nestlé and L'Oréal, the company later became a wholly-owned subsidiary when, in 2014, Nestlé acquired L'Oréal's 50% stake to form Nestlé Skin Health.
In October of 2019, Nestlé Skin Health was carved out and sold to an investment consortium in a deal valued at 10.2 billion Swiss francs. This move rendered Galderma the largest independent global dermatology company in the world.
New ownership immediately set out to refocus the company as...
About Flemming Ørnskov
Flemming Ørnskov, CEO of Galderma, has discussed his leadership approach and the company’s strategy in several podcast interviews. He stated that he runs Galderma as if it were a public company, focusing on financial rigor and compliance. Ørnskov said the company has nearly doubled its R&D investments and launched 22 new products or formulations in a single year. He highlighted two biologic programs: nemolizumab, an IL-31 inhibitor, and QM1114, an in-house developed botulinum toxin A, which he said showed a median onset of two days and duration up to six months in phase three studies. Ørnskov noted that the company maintained supply across its four manufacturing sites during the COVID-19 pandemic. Ørnskov has described his leadership approach as avoiding procrastination and sticking to a clear plan, citing the transformation of Galderma’s logo, website, and operations. He said he runs the company as if it were publicly listed, despite not needing IPO proceeds for funding. He emphasized the company’s focus on dermatology, stating that the company aims to "advance dermatology for every skin story" through innovation. Ørnskov, a former physician, said he draws on his medical background and described his role as being "all in" and focused on delivering for the team. He also noted that the company has increased investment in R&D and training for customer-facing staff.
Transcript (34 segments)
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Narrator0:00
Since its formation in 1981, Galderma and its skin care brands have been mainstays of the dermatology world. With 33 affiliates in 100 countries and more than 5,000 employees, the Swiss company is focused on delivering medical and consumer skin health solutions through its aesthetics, prescription, and consumer care units. Originally formed as a joint venture between Nestlé and L'Oréal, the company became a wholly owned Nestlé subsidiary in 2014 and remained so until October 2019, when Nestlé Skin Health was carved out and sold to an investment consortium in a deal valued at 10.2 billion Swiss francs. The move rendered Galderma the largest independent global dermatology company. New ownership refocused the company as a pure-play dermatology business, restoring the Galderma brand and appointing new leadership, namely CFO Thomas Dietrich and CEO Flemming Ørnskov. Ørnskov, a physician with an MPH from Harvard and an MBA from INSEAD, previously grew Shire into the largest rare disease company and led its $62 billion acquisition by Takeda. Recently, plastic surgeon and host of The Technology of Beauty podcast Dr. Grant Stevens sat down with Dr. Ørnskov for an exclusive interview about his vision and plans for the world's largest independent global dermatology company.
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Grant Stevens2:01
Hello everyone and welcome back to The Technology of Beauty, where I have the opportunity to interview the movers and shakers of the aesthetic business. Today is a very special edition. We have Dr. Flemming Ørnskov, the CEO of Galderma. This is his first interview in the aesthetic space in the United States. He's flown in from Switzerland and he is the number one guy running one of the biggest companies in aesthetics, Galderma, recently purchased from Nestlé Skin Health. Welcome, Flemming.
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Flemming Ørnskov2:53
Thanks for having me, Grant. I'm Danish, grew up in Denmark, and trained as a pediatrician. After practicing, I went to Harvard for an MPH in healthcare management, then back to the University Hospital of Copenhagen. A few years later I entered industry and had a great career at Novartis, Merck, and Bayer. In 2012 I was offered the CEO role at a company called Shire, which was relatively small and focused on GI, neuroscience, and a small rare disease division. I took over on January 1, 2013, grew it into the largest rare disease company in the world, and we sold it in 2019 for $62 billion to Takeda. That was quite a journey.
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Grant Stevens4:06
Wow. And how long have you been in the position you hold now with Galderma?
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Flemming Ørnskov4:09
Well, it depends on whether you take the starting date as the day I became CEO or when I got involved. I left Shire at the end of March 2019. I got a call from investors looking at a secret project to acquire Nestlé Skin Health, which was selling Galderma. I got involved in the diligence, wrote the business plan, and during the summer we acquired it in a very competitive process. Initially it was not with the intent to become CEO, but during the process they asked me to implement the plan. I had the pleasure on October 1, 2019, to take over as CEO.
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Grant Stevens5:07
So October 1 you became the CEO. And can you tell us a little bit about the plan? What are you going to be doing with Galderma?
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Flemming Ørnskov5:15
I have to be honest, I knew the company, but the diligence was an absolute eye-opener. I was surprised Nestlé wanted to divest this fantastic company. The roots go back to 1981, when it was formed as a joint venture with Nestlé and L'Oréal and became Galderma. Everything I checked—the feedback from dermatologists, the history, the products, the number one rated field force in the U.S., the great pipeline—I thought this was a fantastic opportunity, but a bit underappreciated. I couldn't be more thrilled. I knew the prescription part well, had to quickly learn the consumer part with Cetaphil, but the aesthetics part was a real eye-opener and the best learning experience in my career. My first decision was to rename it Galderma. My second was to create three distinct business units: consumer, aesthetics, and prescription medicine, plus a small direct-to-consumer company called Proactiv. We have a simple three-step strategic plan: strong performance in all businesses, a super efficient platform to move with digital, and innovation through growth. We have a fantastic aesthetic portfolio with Restylane, a strong toxin portfolio with Dysport, and Sculptra. We expect six approvals in the next three years, including a ready-to-use liquid toxin, QM 1114, for which we just finished a 1,900-patient study at 60 sites in North America. We also have a state-of-the-art manufacturing facility for toxins in Uppsala, Sweden.
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Grant Stevens6:50
So we all know Galderma has aesthetics and we're going to concentrate on that and the non-aesthetics therapeutic side. Can you tell me if you're just as committed to aesthetics as the prior owner? Will you continue on the aesthetics pathway?
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Flemming Ørnskov7:09
Absolutely. I went back to the roots and renamed the company Galderma. By creating three distinct business units, we really focus on servicing customers. We also have a very efficient shared platform. Innovation is key. We launched Restylane Kysse with a virtual launch using augmented reality training—it was probably one of the most successful launches, on track to be a leading lip filler. I'm also focusing on Sculptra, which has a lot of opportunity, and we have news coming next year. We have earned the trust of our customers and we continue to earn it every day by investing in R&D, training programs like GAIN, and our Aspire loyalty program.
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Grant Stevens8:23
Are you going to innovate and grow within or acquire technologies and goods and services externally?
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Flemming Ørnskov8:33
Growth typically comes from both places. The huge advantage is our pipeline. We have a strong in-line portfolio and many growth opportunities. For now, we have a lot to do internally, but I will look at opportunities to add external innovation. We have six FDA approvals in the last six years in aesthetics and we're going to double that speed with six approvals in the next three years. Our toxin program with ready-to-use liquid toxin is very attractive. We have completed a 1,900-patient study, and we will soon present the data. I'm most proud that we now have a state-of-the-art manufacturing facility for toxins in Uppsala, Sweden, so we have control over manufacturing.
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Grant Stevens10:16
Can we talk about duration at all? I know duration is a big topic.
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Flemming Ørnskov10:19
Duration is very important for customers. With Dysport, we completed a 120-patient study called DREAM, which showed that if you take Dysport twice a year, 95% of patients were very satisfied with twice-a-year injections for glabellar lines. It's about consistency, dose, and convenience. Our new toxin also delivers well on that parameter.
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Grant Stevens11:27
You mentioned injectables: Restylane, Dysport, Sculptra. Do you have any appetite for devices—energy-based technology in aesthetics?
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Flemming Ørnskov11:32
With my physician background, one of my first trips was to Sweden to look at the technologies behind Restylane. I said, let's double down on what we have. Restylane Kysse was launched virtually with augmented reality training, and it's been extremely successful. I want to focus on our six new opportunities over the next three years, including the ready-to-use toxin and Sculptra. I haven't made up my mind on devices; I will rely on my team. But our first priority is to deliver on our strong pipeline.
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Grant Stevens13:32
It sounds like you are firmly committed to the aesthetic space. Thank you for being a premier partner of the American Society for Aesthetic Plastic Surgery. You have been historically and remain a premier partner—that supports our society greatly.
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Flemming Ørnskov13:55
Thank you. I can't take full credit, but when I took over, I said we have to earn the trust of our customers every day. We have increased our GAIN training program, dramatically expanded our Aspire loyalty program, and invested more in R&D. We are doubling down on innovation. The launch of Kysse showed our commitment. We also partnered with Alastin to minimize bruising and swelling, which was an innovative cross-company collaboration. We benefit from these partnerships.
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Grant Stevens16:47
Are you interested in lasers or other energy-based devices for facial or body work, like body contouring?
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Flemming Ørnskov16:57
I haven't made up my mind and will rely on my team. But if we want to live out our leadership aspiration to be the leading company in the field, we need to double down on science and innovation. My first priority is to deliver on our great pipeline. We also faced the COVID pandemic—the resilience of the aesthetic space has been impressive. There is pent-up demand, with penetration in the U.S. in single digits. The field adapted with virtual pre-consultations, parking lot waiting, and quick treatments. I'm impressed by the agility. We had uninterrupted supply, completed clinical trials on time, and our organization adapted overnight with digitalization and augmented reality training. We also produced sanitizers in France and Canada to help during the crisis.
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Grant Stevens20:59
Well, that's wonderful. We love companies driven by science, not just marketing. I applaud your efforts. You've mentioned COVID and virtual training. What other ways has COVID affected you or Galderma?
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Flemming Ørnskov21:36
The first thing I worried about was getting our products to customers. We have manufacturing sites in multiple countries—France was hit hard, but we managed to keep producing. In Montreal and Uppsala, we kept sites open. We had uninterrupted supply. Second, I worried about clinical trials. I was proud that we completed the 1,900-patient study for our ready-to-use toxin on time, with virtual follow-ups. Third, the organization adapted overnight to digitalization, augmented reality training, and a completely different launch approach. I didn't hear people complain; they saw it as opportunity. External partners, customers, and providers adapted to make patients feel safe. I thank everyone for that. We also converted some manufacturing lines to produce sanitizers and donated masks.
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Grant Stevens25:02
Thank you. Tell me, what does your crystal ball show in the aesthetic space? What changes do you see one, five, ten years down the line?
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Flemming Ørnskov25:14
First, the market will continue to grow due to pent-up demand and new innovation. Second, more innovation and technology—our pipeline with six launches in three years, the ready-to-use toxin, our own manufacturing in Sweden, and further development of Sculptra. Third, we have to rethink how we operate and interact with consumers and patients. The end consumer will be empowered even more, looking for consistent high quality, service, loyalty, and financial support. Digitalization will accelerate. Those are the three trends I see.
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Grant Stevens27:05
It's an exciting time. I'm very excited to meet you and look forward to working with you. Galderma has always been a leader, and I'm elated that you're so committed to our space. Thank you for being here.
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Flemming Ørnskov27:29
Thank you for having me. We are at your service.
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Grant Stevens27:33
And everyone calls you Flemming, right?
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Flemming Ørnskov27:35
Everybody calls me Flemming. I'm a doctor but I prefer just Flemming. I'm Danish, low-key, not about hierarchy. I think a low level of hierarchy is important, especially with remote work. I'm proud that people feel they can call me Flemming. I still have more to earn their full trust.
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Grant Stevens28:13
Well, if you're Flemming to me, then I'm Granto to you, because my friends call me Granto. So no more Dr. Stevens. Can you say Granto?
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Flemming Ørnskov28:27
Granto. Yes, I will.
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Grant Stevens28:31
Thank you again. Have a safe trip back. Switzerland is where you're living now?
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Flemming Ørnskov28:34
I also have a home on the East Coast. I managed Shire mostly out of Cambridge, Massachusetts, so I spend time there. I also enjoy Switzerland, though less often now due to restrictions.
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Grant Stevens29:05
If you're ever in Los Angeles, please come to my office at Marina del Rey. We'll have dinner or coffee. There's a business called the Proactiv Company—we didn't have time to talk about it. Would you like to tell us a little about Proactiv?
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Flemming Ørnskov29:27
Proactiv was acquired by Nestlé and is a subscription model for acne medicines. It was ahead of its time digitally. We have learned a lot from them about e-commerce, clicks, repeat customers, and advertising. When we launched Restylane Kysse, we learned from the Proactiv team. It's a very exciting opportunity.
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Grant Stevens30:30
I know the subscription model for aesthetic services is popular. Hint MD was acquired by Revance, for example. It seems here to stay. People like to budget monthly costs. Thank you again for coming. And thank you all for joining us on The Technology of Beauty. We'll see you in two weeks.