Nestlé’s strategic shift: F&B giant relinquishes peanut allergy business
05 Sep 2023 --- Nestlé has divested from Palforzia, its peanut allergy business, to Stallergenes Greer, a biopharmaceutical company specializing in diagnosing and treating allergies. The deal’s value was not disclosed.
The divestment comes after an announcement in November 2022 in which the food giant revealed it was exploring “strategic options” for Palforzia.
“We are confident that Stallergenes Greer will take Palforzia forward and ensure this unique treatment supports patients around the world,” says Greg Behar, CEO of Nestlé Health Science.
“At the same time, the divestiture allows Nestlé Health Science to focus on its core strengths and key growth drivers.”
After the deal, Nestlé will receive milestone payments and ongoing royalties from Stallergenes Greer.
Moreover, there will be a transition period to “ensure business continuity” and “give patients uninterrupted access to the treatment.”
Expected move?
Following slower-than-expected adoption by patients and healthcare professionals, Nestlé announced the potential divesting of Palforzia last year.
The company then expected the review to be done in the first half of 2023 and said Nestlé Health Science would increase its focus on medical nutrition and consumer care.
The divestment was put on the table as part of the business strategy for sustainable value creation and targets for 2025.
The divestment comes after an announcement in November 2022 in which the food giant revealed it was exploring “strategic options” for Palforzia.“We did have high hopes for this business,” said Mark Schneider, Nestlé’s CEO in November 2022.
“Instead of a blockbuster, what this looks like more and more is a very potent and very successful niche therapy.”
The final decision to divest comes just three years after Nestlé Health Science entered into a definitive agreement to acquire Aimmune Therapeutics for US$2.6 billion in August 2020.
At the time, Nestlé told Nutrition Insight its goals were to “create a world leader in the food allergy space.”
Health Science growth
Amid trouble in its peanut allergy business, Nestlé reported 3.5% organic growth for its Nestlé Health Science division during the first six months of the year.
The company saw a return to growth for its vitamins, minerals and supplements in the second quarter. At the same time, Active Nutrition also expanded thanks to positive sales development for healthy-aging products.
“Growth in Nestlé Health Science was driven by pricing, e-commerce momentum and geographic expansion,” the company explains.
Nestlé’s complete business reported strong organic growth of 8.7% in the first half of 2023, growing faster than in 2022, which saw the highest sales growth of the company in 14 years (8.5%).
By Marc Cervera
