Almirall’s Ambition is Stalled by a Declining European Pharma Landscape
Almirall’s CEO, Carlos Gallardo, delivered a stark warning on 29 January 2026 that Europe has ceased to be the “pharmacy of the world.” Speaking at a Matins Esade session, he condemned the continent’s loss of competitive edge amid the United States’ pro‑profit policies and the relentless onslaught of Chinese competitors. Gallardo’s rhetoric is not a mere lament; it is a clarion call for systemic change that the company’s market performance has yet to translate into.
The company’s stock, trading at €12.46 on 27 January, has fallen below its 52‑week low of €8.65 set in April 2025. With a price‑earnings ratio of 61.874, investors are questioning whether Almirall’s earnings can justify such valuation. Yet the firm’s strategic focus on dermatology—anchored by brands such as ACTIKERALL, BALNEUM, and the recently approved Seysara—demonstrates a commitment to niche markets that can command premium pricing.
Seysara’s Regulatory Nod: A Silver Lining
On the same day, China’s National Medical Products Administration (NMPA) granted approval for Seysara (sarecycline hydrochloride) to treat moderate‑to‑severe acne vulgaris in patients nine and older. This milestone is significant for several reasons:
| Aspect | Detail |
|---|---|
| Therapeutic niche | Inflammatory, non‑nodular acne—an area underserved by existing tetracyclines. |
| Innovation | First oral antibiotic specifically designed for acne, reducing systemic side effects. |
| Market potential | China’s vast dermatology market and high prevalence of acne create a sizeable revenue stream. |
| Strategic fit | Complements Almirall’s existing dermatology portfolio and strengthens its position against global players. |
The approval is a testament to Almirall’s research capability and regulatory acumen. It offers a counterbalance to the CEO’s bleak European outlook, showing that the company can still achieve breakthroughs on the world stage.
The Broader Context: A European Pharmaceutical Crisis
Gallardo’s comments echo concerns voiced by other European executives, who are alarmed by:
- Regulatory Drag – Lengthy approval processes and high compliance costs erode time‑to‑market advantages.
- Pricing Pressures – National health systems impose aggressive price controls, squeezing margins.
- Talent Drain – Top scientists and executives increasingly migrate to the United States and China, where innovation is more rapidly rewarded.
- Geopolitical Shifts – U.S. administration policies under former President Trump have disrupted trade agreements, further hampering European access to U.S. capital markets.
While Almirall’s approval of Seysara in China illustrates a strategic pivot, it also underscores a fundamental reliance on external markets to offset domestic shortcomings. The company’s market cap—just over €2.7 billion—reflects the limited scale of its operations relative to global competitors.
Critical Assessment
The juxtaposition of Gallardo’s admonitions and the Seysara approval creates a paradox. On one side, the company’s leadership acknowledges systemic failure in Europe; on the other, it celebrates a regulatory success that expands its global footprint. This duality suggests a company in flux—one that can innovate yet struggles to sustain its competitive advantage within its home market.
Investors should weigh the following risks:
- Valuation Concerns: A PE ratio near 62 implies significant upside expectations that may not materialise if Europe’s pharma sector continues to deteriorate.
- Dependence on China: While the Chinese market offers growth, it also exposes Almirall to regulatory uncertainties and geopolitical tensions.
- Strategic Execution: The company must translate regulatory approvals into commercial success; failure to do so will erode investor confidence.
In conclusion, Almirall’s current trajectory is a study in contrasts. The company’s capacity to secure approvals in key international markets demonstrates resilience and ingenuity. Yet, the stark reality of a declining European pharmaceutical landscape remains a looming threat that could undermine future growth. Stakeholders must scrutinise whether Almirall can navigate these challenges without compromising its strategic ambitions or shareholder value.
