Nestlé to buy UK medical device company
Nestlé has announced that it is to buy UK medical device company Phagenesis which has developed a new treatment for dysphagia.
Under the terms of the agreement, Nestlé Health Science (NHSc), a wholly-owned subsidiary of Nestlé, will make an upfront payment, followed by milestone-based funding, while Phagenesis completes the clinical evaluation of Phagenyx. The staged acquisition will be based upon successful completion of European and US development programmes anticipated by 2019. Financial terms have not been disclosed.
Reinhard Krickl, CEO of Phagenesis, said: “Nestlé Health Science is the leading global player in dysphagia with capabilities and reach to enable Phagenesis to accelerate the development and deployment of Phagenyx to patients around the world.”
Dysphagia, the inability to swallow safely, is a condition with high prevalence as well as high clinical and health economic burden. Dysphagia occurs in around 29% to 55% of stroke patients, with 15 million people worldwide suffering a stroke every year.
It is a debilitating condition that frequently leads to life-threatening complications, including aspiration pneumonia, malnutrition and dehydration.
Phagenyx is a novel medical device designed to restore the neurological control of swallowing. It is is based on research that establishes a mechanism of action of delivering pharyngeal electrical stimulation (PES) to treat the neurological cause of dysphagia.
Oern Stuge, chairman of Phagenesis, said: “Nestlé Health Science’ investment positions the company well to address this immense unmet medical need.”
Gunnar Weikert, director of Phagenesis and Founder of Inventages Venture Capital, commented: “As a long-term investor in Phagenesis we are pleased about this significant investment by Nestle Health Science.”
Greg Behar, CEO of Nestlé Health Science, stated: “Dysphagia is a strategic focus for Nestlé Health Science. This innovation can bring a new dimension to swallowing rehabilitation that can be transformational from a patient and healthcare professional perspective.”