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LONDON - Waldencast plc (NASDAQ:WALD), a $298 million market cap beauty and wellness company with impressive gross profit margins of 70%, announced Wednesday it has acquired Novaestiq Corp. and the U.S. rights to the Saypha line of hyaluronic acid injectable gels, expanding its Obagi Medical brand beyond skincare into the injectable aesthetics market. According to InvestingPro data, the company has demonstrated strong revenue growth of 25.55% over the last twelve months.
The strategic acquisition positions Obagi Medical to compete in both the U.S. medical-grade skincare market, projected to reach $2.2 billion by 2029, and the U.S. dermal filler market, expected to grow to $2 billion by 2029, according to the company. InvestingPro analysis suggests Waldencast is currently undervalued, trading at just 0.45 times book value, potentially presenting an opportunity for investors interested in the growing aesthetics market. Get access to 7 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
"Adding proven products into our portfolio increases our addressable market and allows us to deliver solutions for professionals and patients seeking both skincare and aesthetic treatments," said Michel Brousset, Co-Founder and CEO of Waldencast, in a press release statement.
The transaction brings two injectable products to Obagi Medical’s portfolio: Saypha ChIQ and Saypha MagIQ hyaluronic acid gel lines. The products are currently undergoing FDA approval and are already marketed in over 80 countries globally.
According to the company, the clinical studies supporting these products include representation of diverse skin types and are more than twice the size of typical trials in the category.
Under the terms of the agreement, Waldencast will pay cash at closing, ongoing royalties based on net sales, and potentially issue Waldencast class A shares equal to approximately 7% of fully diluted shares. The share issuance is contingent upon FDA approval and achieving revenue thresholds of $100 million and $200 million by June 2031.
Dr. Suzan Obagi, Chief Medical Director at Obagi Medical, stated, "By combining Obagi Medical skincare with injectable procedures under the guidance of a qualified professional, patients can achieve more significant, longer-lasting, and natural-looking results."
Waldencast described Obagi Medical as the fastest-growing U.S. professional skincare brand among the top ten in its category, citing data from Kline’s 2024 Global Professional Skin Care Series. The company maintains a healthy liquidity position with a current ratio of 1.35, though InvestingPro research indicates challenges ahead with analysts not anticipating profitability this year. Discover detailed insights and access the comprehensive Pro Research Report, available for over 1,400 US stocks, to make more informed investment decisions.
In other recent news, Waldencast Acquisition Corp reported its first-quarter 2025 earnings, revealing a larger-than-expected loss. The company reported an earnings per share of -$0.07, missing the forecasted EPS of -$0.038. Revenue also fell short, coming in at $65.4 million against an expected $68.34 million. Canaccord Genuity adjusted its outlook on Waldencast, reducing the price target to $5.00 from the previous $6.00, while maintaining a Buy rating. Telsey Advisory Group also revised its financial outlook, lowering the price target to $4.00 from $5.00, but kept an Outperform rating. Waldencast’s Milk Makeup brand faced a 15.1% year-over-year sales decrease, while Obagi’s sales increased by 7.0%, though supply chain issues affected performance. Despite these challenges, the company’s gross margin exceeded predictions, and management remains optimistic about the upcoming quarter.
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