Demand for science-led skincare products continues to grow across Europe, driven by increasing consumer awareness, more stringent regulatory requirements and greater focus on sustainability. For brands looking to bring high-quality products to market, technical expertise and manufacturing capability have become increasingly important differentiators.
A differentiated model built for resilience and innovation
A key feature of DermaPharm’s proposition is its dual model, combining its own branded products with its CDMO and private label offering.
While not critical for every customer, this model provides meaningful strategic advantages.
Operating its own brands gives DermaPharm direct access to end-market insights, allowing it to stay close to evolving consumer trends. This insight feeds directly into its CDMO offering, enabling faster and more cost-effective innovation for customers.
At the same time, the ability to offer both branded and private label products allows retailers, pharmacies, brands and health and beauty stores to access a broader, more integrated product range through a single partner.
The model also adds resilience, helping to smooth seasonal fluctuations in production and demand. The business can also efficiently manage a broad range of batch sizes, allowing it to support both large-scale retail programmes and smaller, fast-growing beauty brands. This flexibility broadens its customer base while creating opportunities to participate in new product and category trends.
DermaPharm has built a leading position at the intersection of skincare and consumer health, combining deep scientific expertise with a fully integrated manufacturing platform.
With a strong foothold across the Nordics and growing reach across Western Europe, the business has established itself as a market leader in sun protection; a niche underpinned by significant in-house R&D capabilities and stringent regulatory expertise.
DermaPharm operates a full-service CDMO model, spanning product development, manufacturing, packaging, design and commercialisation. This end-to-end offering, combined with a broad and flexible product portfolio, means customers can bring both core and niche products to market efficiently.
Alongside this, the business has built a reputation for environmentally friendly and skin-sensitive products, supported by certifications such as Swan, Ecocert, and Asthma & Allergy. This positioning has been central to its success.
In the Nordics, where regulatory standards and consumer expectations are particularly high, DermaPharm’s focus on certified, “clean” products has enabled clear differentiation, supporting premium pricing and strong margins. Increasingly, this demand is extending across Europe, reinforcing the scalability of the model.
A differentiated model built for resilience and innovation
A key feature of DermaPharm’s proposition is its dual model, combining its own branded products with its CDMO and private label offering.
While not critical for every customer, this model provides meaningful strategic advantages.
Operating its own brands gives DermaPharm direct access to end-market insights, allowing it to stay close to evolving consumer trends. This insight feeds directly into its CDMO offering, enabling faster and more cost-effective innovation for customers.
At the same time, the ability to offer both branded and private label products allows retailers, pharmacies, brands and health and beauty stores to access a broader, more integrated product range through a single partner.
The model also adds resilience, helping to smooth seasonal fluctuations in production and demand. The business can also efficiently manage a broad range of batch sizes, allowing it to support both large-scale retail programmes and smaller, fast-growing beauty brands. This flexibility broadens its customer base while creating opportunities to participate in new product and category trends.
Operating its own brands gives DermaPharm direct access to end-market insights, allowing it to stay close to evolving consumer trends.
Finding the right partner for the next phase of growth
As the business entered its next phase, shareholder priorities were closely aligned but distinct.
The majority shareholder, holding an 80% stake, was primarily focused on achieving a successful exit at an attractive valuation. In contrast, the management team, led by the CEO, sought not only liquidity but also a partner who could support the long-term development of the business.
Having built a strong market position, the next phase required a partner capable of supporting international expansion, driving strategic initiatives, and providing meaningful challenge and input at management level.
From the outset, we worked closely with all stakeholders to define what “the right partner” looked like in practice, ensuring alignment on both financial and strategic objectives.
Our role was not only to run a competitive process, but to carefully shape the investor universe, focusing on those with relevant sector expertise, international scaling experience, and the ability to support the business beyond the transaction.
By maintaining this dual focus on value and fit, we were able to deliver a process that achieved strong valuation outcomes while securing a partner aligned with the company’s long-term growth ambitions.
Turning Nordic expertise into international growth
Operating in one of the most demanding regulatory environments in Europe has been a defining advantage for DermaPharm.
The business has developed deep expertise across certification, compliance, product development and quality assurance, particularly within sun protection, where standards are especially stringent.
This has positioned DermaPharm as a trusted partner in the Nordic market, and increasingly as a credible entrant into new geographies.
With certification standards in the Nordics among the highest globally, this expertise creates a natural platform for expansion into markets south of the Danish border and beyond, where demand for high-quality, certified skincare products continues to grow.
Finding the right partner for the next phase of growth
As the business entered its next phase, shareholder priorities were closely aligned but distinct.
The majority shareholder, holding an 80% stake, was primarily focused on achieving a successful exit at an attractive valuation. In contrast, the management team, led by the CEO, sought not only liquidity but also a partner who could support the long-term development of the business.
Having built a strong market position, the next phase required a partner capable of supporting international expansion, driving strategic initiatives, and providing meaningful challenge and input at management level.
From the outset, we worked closely with all stakeholders to define what “the right partner” looked like in practice, ensuring alignment on both financial and strategic objectives.
Our role was not only to run a competitive process, but to carefully shape the investor universe, focusing on those with relevant sector expertise, international scaling experience, and the ability to support the business beyond the transaction.
By maintaining this dual focus on value and fit, we were able to deliver a process that achieved strong valuation outcomes while securing a partner aligned with the company’s long-term growth ambitions.
While DermaPharm operates within consumer skincare, we positioned the company around its scientific capabilities and its role within consumer health.
Positioning DermaPharm for the right investor audience
From the outset, positioning was critical to unlocking the full value of the business.
Rather than allowing the narrative to focus on private label manufacturing, which can often be perceived as less attractive, we shaped the equity story around DermaPharm’s R&D strength, its leadership in sun protection, and its ability to deliver high-value, science-led products.
This positioning meant the business was viewed through the lens of a differentiated, expertise-led platform, rather than a traditional manufacturing asset.
The approach resonated strongly with investors, particularly in the context of increasing outsourcing across the sector and growing demand for high-quality CDMO platforms.
Partnering with Archimed to accelerate growth
Archimed emerged as the ideal partner to support DermaPharm’s next stage of development.
With deep expertise in healthcare and a strong understanding of the opportunity within consumer health, Archimed brought both strategic alignment and sector knowledge.
Importantly, the team also offered relevant operational experience, including leadership with direct experience in European skincare CDMO businesses. This combination of financial backing and hands-on expertise positioned Archimed to actively support the company’s continued growth.
Under their ownership, the focus will be on scaling the business across Western and Southern Europe, supported by enhanced go-to-market strategies, operational improvements, and targeted expansion into new retail and pharmacy channels.
DermaPharm’s strong internal R&D capabilities will continue to drive product development, while Archimed’s experience will support broader strategic execution and growth.
A sector primed for continued consolidation
The transaction also reflects wider dynamics within the skincare and consumer health market.
CDMO platforms are attracting increasing investor interest, driven by strong customer retention, high value-add services, and attractive margin profiles. At the same time, the market remains fragmented in regions such as the Nordics, while consolidation is already more advanced in Southern Europe.
This creates a clear opportunity for scaled platforms like DermaPharm to continue expanding, both organically and through acquisition.
With strong fundamentals, a differentiated market position, and the backing of a specialist investor, DermaPharm is well positioned to capitalise on these trends and accelerate its growth across Europe.
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To find out more about how we can help your business:
Clearwater advisers
Manuela Scheibe
Partner and Nordic Head of Debt Advisory +46 76 722 51 00 manuela.scheibe@clearwatercf.com Connect
Sofie Nicoline Rostgaard Petersen
Senior Associate +45 40 44 41 45 sofie.kromann@clearwatercf.com Connect
Ziggy Christian Zinn Thomas
Associate Director +45 70 22 50 33 Ziggy.thomas@clearwatercf.com ConnectSuccess Stories
