Nestlé Health Science has divested its peanut allergy immunotherapy Palforzia to allergy specialist Stallergenes Greer, marking a significant shift in the food allergy treatment landscape. The transaction comes merely three years after Nestlé's $2.6 billion acquisition of Aimmune Therapeutics, though financial terms of the current deal remain undisclosed.
Market Challenges and Strategic Realignment
The divestiture follows Nestlé's strategic review initiated in November, prompted by Palforzia's underwhelming market performance. Despite being the first FDA-approved therapy for peanut allergy, the treatment faced significant adoption barriers, including biweekly clinic visits and mandatory medical supervision requirements. These operational challenges, combined with regulatory restrictions on physician compensation for monitoring time, limited the therapy's commercial success.
Greg Behar, CEO of Nestlé Health Science, explained the strategic rationale: "We are confident that Stallergenes Greer will take Palforzia forward and ensure this unique treatment supports patients around the world. The divestiture allows Nestlé Health Science to focus on its core strengths and key growth drivers."
Clinical Impact and Treatment Approach
Palforzia, approved by the FDA in 2020 for children aged 4 to 17, represents a breakthrough in peanut allergy management. The oral immunotherapy works by gradually exposing patients to increasing amounts of peanut protein to build tolerance. While not a cure, the treatment can significantly reduce the severity of allergic reactions, potentially preventing life-threatening episodes in a condition that affects approximately one million children in the United States.
Strategic Fit for Stallergenes Greer
The acquisition marks a strategic expansion for Stallergenes Greer, establishing it as the first allergen immunotherapy company to offer comprehensive solutions for both respiratory and food allergies. Michele Antonelli, CEO of Stallergenes Greer, characterized the acquisition as a "significant milestone" for the company's growth strategy.
Financial Structure and Future Implications
While stepping back from the pharmaceutical sector, Nestlé has structured the deal to maintain potential upside through milestone payments and royalties tied to Palforzia's future performance. This arrangement follows Nestlé's broader pattern of pharmaceutical divestments, including the 2019 sale of dermatology brand Galderma, as the company refocuses on its core clinical nutrition business.
