Nestlé SA is discussing a potential sale of its peanut allergy medicine to Swiss health-care group Stallergenes Greer, people with knowledge of the matter said.
(Bloomberg) — Nestlé SA is discussing a potential sale of its peanut allergy medicine to Swiss health-care group Stallergenes Greer, people with knowledge of the matter said.
Stallergenes has been holding talks with Nestlé about a possible deal for the Palforzia treatment, the people said, asking not to be identified discussing confidential information.
Deliberations are ongoing, and there’s no certainty they will reach an agreement, according to the people. Other bidders could also emerge for the asset, they said.
A representative for Nestlé declined to comment, while a spokesperson for Stallergenes didn’t respond to requests for comment.
Nestlé acquired the maker of Palforzia in a $2.6 billion deal in 2020 that 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. Earlier this year, 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.
Stallergenes specializes in allergen immunotherapies. The company has manufacturing sites in France and the US and has a presence in 19 countries, according to its website.
Read more: Nestlé’s $6,000 Peanut Allergy Pill Has Been a Dud
–With assistance from Dasha Afanasieva and Naomi Kresge.
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