Waldencast plc (NASDAQ: WALD)

Waldencast plc, a company that operates in the beauty and wellness industry, is publicly traded under the symbol WALD. The company specializes in the professional skincare segment, offering transformative solutions at every stage of the skincare journey. With a strong brand reputation, extensive product portfolio, and global distribution network, Waldencast has established itself as a leading player in the industry.

Waldencast generates revenue through its two main segments: Obagi and Milk. Obagi is a professional skincare segment that offers more than 150 cosmetic, OTC, and prescription products, and a device. Obagi Medical, the flagship brand, is among the most respected and recognized brands in the professional skincare category. The portfolio includes a range of products designed to address various skin concerns, such as fine lines and wrinkles, elasticity, photodamage, hyperpigmentation, acne, oxidative stress, environmental damage, and hydration.

Milk is another professional skincare segment that offers a range of skin care, hair care, and body care products designed to address various skin concerns. The company's products are sold through various channels, including the physician-dispensed channel, medical spas, and retail stores.

Waldencast's customers include healthcare professionals, medical spas, and retail stores. The company's products are used by consumers who seek advanced skincare solutions in a customized skincare regimen designed by a professional.

In terms of its position within the industry, Waldencast is a leading player in the professional skincare segment. The company's Obagi brand is a well-established and respected brand in the industry, and its products are widely used by healthcare professionals and consumers.

Waldencast's Obagi Clinical line, launched in December 2018, was designed to meet the needs of "skin-tellectual" consumers who may not yet regularly visit a dermatologist or skincare professional. This retail skincare brand leveraged the over 30-year legacy of Obagi Medical to incorporate clinically proven ingredients in cosmetic and OTC solutions that maintain healthy, more youthful-looking skin, mitigate environmental damage, and address the emerging signs of skin aging.

The Skintrinsiq device, launched in July 2021, is a professional-use facial device that offers consumers an advanced delivery system for Obagi's transformational products. The device features a small footprint and easy-to-use interface designed to minimize training time and maximize time for skin care.

Waldencast's R&D program aims to design products and execute studies that demonstrate the high-quality design of its formulas and powerful performance of its products. The company applies a scientific approach to all of its products, from inception to development and testing. After formulation, all of its products are tested for integrity, safety, and performance.

The SKINCLUSION initiative, launched in May 2019, is designed to elevate the global dialogue about diversity and how it can make conscious choices to see the beauty in all its differences. The initiative aims to change the narrative by incorporating more diversity in its model photography, social media content, and brand ambassadors.

Waldencast sells its products to consumers via e-commerce platforms through its online store at [www.obagi.com](http://www.obagi.com), as well as on [www.amazon.com](http://www.amazon.com) and through Target's online store at [www.target.com](http://www.target.com), among other e-retailers and distributors. The company intends to increasingly develop this sales channel to capture additional margin opportunities.

Waldencast currently outsources all its product manufacturing to third-party CMOs. The company has two or more qualified CMOs for some of its key products, however, certain products, including some of its sun protection products, are currently supplied by a single source.

Waldencast holds over 80 provisional and issued patents worldwide for the composition of many of its products. The company's success depends in part on its ability to obtain and maintain proprietary protection for its product candidates, technology, and know-how, to operate without infringing the proprietary rights of others and to prevent others from infringing its proprietary rights.

Waldencast's products are subject to regulation by the FDA, FTC, and comparable state, local, and foreign regulatory authorities. The company's products are also subject to regulation by the CPSC under the provisions of the Consumer Product Safety Act, as amended by the Consumer Product Safety Improvement Act of 2008.

In the U.S., the majority of Waldencast's products are cosmetics, which are not subject to pre-market approval by the FDA. However, certain ingredients must be pre-approved for the specific intended use in the product and are subject to certain restrictions on their use.

Waldencast's prescription-only products containing hydroquinone are regulated as drugs. However, to date, the company has not sought or obtained required NDAs or other FDA approvals for these products. The FDA has historically utilized a risk-based enforcement approach with respect to drugs marketed without required approvals.