Nestlé SA has kicked off the sale of its peanut allergy medicine, people with knowledge of the matter said, as it seeks to reverse what’s proven to be a costly bet for the consumer company.
(Bloomberg) — Nestlé SA has kicked off the sale of its peanut allergy medicine, people with knowledge of the matter said, as it seeks to reverse what’s proven to be a costly bet for the consumer company.
The Swiss company is working with Evercore Inc. to gauge interest in the Palforzia treatment, according to the people, asking not to be identified discussing confidential information. It plans to send out marketing documents imminently and initial offers are expected in April, they said.
Palforzia could draw interest from pharmaceutical firms keen to expand their suites of allergy treatments, as well as broader health-care companies, the people said.
Deliberations are ongoing and no final decisions on the timing of any sale have been taken. Representatives for Nestlé and Evercore declined to comment.
Nestlé bought the maker of Palforzia in a $2.6 billion deal in 2020. The purchase marked one of Chief Executive Officer Mark Schneider’s biggest forays into health since taking over in 2017.
But Schneider launched a strategic review of the therapy in November, saying its uptake hadn’t been sufficient. Last month, Zurich-listed Nestlé announced a $2.1 billion impairment charge on the peanut medication, effectively writing down the bulk of its value.
Peanut allergy is a widespread condition, the successful treatment of which has eluded Big Pharma for years. Palforzia is essentially peanut protein that’s been packed in a pill. By exposing children to tiny but gradually increasing amounts of the ingredient, Palforzia slowly raises their sensitivity threshold.
Read more: Nestlé’s $6,000 Peanut Allergy Pill Has Been a Dud
–With assistance from Dasha Afanasieva.
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