Nestlé Health Science To Acquire Dysphagia Treatment Company
07 Sep 2016 --- Nestlé’s Institute of Health Science is set to acquire Phagenesis, a UK based company developing an innovative pharyngeal electrical stimulation device used to treat dysphagia. Also known as swallowing difficulty, the condition is commonly experienced by post stroke patients, but also the elderly and those undergoing post mechanical ventilation in intensive care units.
The acquisition will see Nestlé Health Science take a more active role in the increasingly prevalent dysphagia space.
Nestlé’s Health Science division is rapidly expanding, investing significant funds into companies researching and developing products aimed at the aging population and those suffering from medical conditions.
It now has over a dozen brands in its portfolio, including Meritene, Boost, Optisource and Peptamen for this very purpose.
The strategic acquisition of Phagenesis from Nestlé Health Science will bring a new dimension to swallowing rehabilitation that can be transformational from a patient and healthcare professional perspective
“Advancing an integrated approach to dysphagia management, from screening, diagnosis and treatment is a key goal for Nestlé Health Science and the healthcare community, ranging from new ways to improve swallowing function to thickening agents and texture modified food to improve swallowing safety,” said Greg Behar, CEO of Nestlé Health Science.
Nestlé Health Sciences’ focus on creating products for the aging population is well-founded. According to the World Health Organization (WHO): “In almost every country, the proportion of people aged over 60 years is growing faster than any other age group, as a result of both longer life expectancy and declining fertility rates.” In fact, the WHO states that: “Between 2000 and 2050, the number of people aged 60 and over is expected to double. In 2050, more than 1 in 5 people will be 60 years or older.”
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 around the world.”
Krickl continued, “Phagenyx is a unique medical device innovation in treating dysphagic patients based on a well-researched mechanism of action. Our initial focus is on stroke patients but multiple applications are possible, including for ICU patients whose swallowing function can be compromised.”
The staged acquisition will be based upon the successful completion of clinical development programs in Europe and the US anticipated by 2019. Nestlé Health Science will make an upfront payment, followed by milestone-based funding while Phagenesis completes the developments of it’s Phagenyx product, an electrical stimulation device designed to restore the neurological control of swallowing.
Further financial terms of the acquisition have not been disclosed.
