Divided by vastly different regulations and pursuits, the pharmaceutical and beauty industry were long seen as separate identities. Skincare, with OTC products like salicylic acid and benzoyl peroxide sunscreen, which are regulated by the FDA, occupy an in-between space of pharma and beauty. But save for the odd drug innovation that progressed into beauty territory (Allergan’s Botox or Novo Nordisk’s Ozempic), both worlds remained separate. Recently there has been an increasing convergence emerging between the two. Pharmaceutical companies are investing in beauty brands and expanding their consumer health and beauty arms. While the economic power of beauty is nowhere near that of a blockbuster drug launch, it is helping pharmaceutical companies gain an entirely new consumer audience.Taro Pharmaceuticals purchased Alchemee, formerly The Proactiv Company, from Galderma in March 2022. Pierre Fabre Laboratories—part of French pharmaceutical and dermo-cosmetic group Pierre Fabre—bought a stake in female hormonal wellness brand MiYé in September 2023 and acquired dermatological skincare company Glytone from Galderma in March 2024. Leading pharmaceutical company Megalabs acquired a majority stake in dermatology and haircare company DS Laboratories in May 2024. In July 2024, Crescent Capital Partners sold Australian natural cosmetics brand Nude by Nature to Arrotex Pharmaceuticals, which has been slowly building its consumer health and beauty enterprise VidaCorp. Arrotex Pharmaceuticals also acquired Makeup Cartel and its four owned brands from Point King Capital that same month.