Nestlé to grow medical nutrition portfolio with Allergan’s Zenpep divestment
27 Jan 2020 --- Following a string of recent takeovers, Nestlé has entered into an asset purchase agreement with Allergan to acquire the gastrointestinal medications Zenpep and Viokace. Nestlé says the move will expand the company’s medical nutrition business and complement its portfolio of therapeutic products. The deal is expected to be finalized with the merger of biopharmaceutical companies AbbVie and Allergan, which will also see AstraZeneca recover the global rights for brazikumab, a monoclonal antibody. Financial details of the deal have not been disclosed.
“Medical nutrition is an important part of our business – it is just as significant for us as consumer care in terms of fueling growth and providing nutritional solutions. Zenpep fits perfectly into this, particularly within our focus of food ingestion, digestion and absorption,” Jacquelyn Campo, Senior Director Corporate Communications at Nestlé Health Science, tells NutritionInsight.
Zenpep is a medication for people who cannot digest food properly because their pancreas does not provide enough enzymes to break down fat, protein and carbohydrates.
Zenpep’s 2018 net sales were recorded at US$237 million. It is currently available in the US, with Campo noting that while there are no current plans for geographic expansion, they have not ruled this out for the future. Viokace is also a pancreatic enzyme replacement therapy and is available in the US and Canada. There are currently no intentions to alter either medication.
“Nestlé’s acquisition of Zenpep is a strategic decision that will enhance our growing medical nutrition portfolio,” says Greg Behar, CEO of Nestlé Health Science. “This is a significant opportunity for our business in the US to add a complementary product to our existing range of nutrition products that support food ingestion, digestion and absorption. We have extensive experience in Zenpep’s therapeutic areas of digestive diseases through our medical nutrition business and will leverage those capabilities as we grow this new business.”
Driving growth
Anna Mohl, Business Executive Officer of Nestlé Health Science USA, notes that the company is looking forward to leveraging its broad capabilities and expanding its team to drive rapid growth of this new acquisition.
“We are pleased that this acquisition will provide a new opportunity to our customers and their patients for healthier lives. We have very good relationships with the medical and healthcare community through our Medical Affairs, Clinical Operations, Market Access and Sales teams. This provides a strong foundation and will allow us to quickly integrate Zenpep into Nestlé Health Science,” adds Campo.
Zenpep is a medication for people who cannot digest food properly because their pancreas does not provide enough enzymes.Nestlé has recently been active in the gut space, with the announcement earlier this month that Nestlé Health Science (NHSc) and Codexis – a biotherapeutics developer – signed an agreement to advance the development of CDX-7108, the lead candidate for the potential treatment of a gastrointestinal (GI) disorder called phenylketonuria. Late last year, Nestlé also partnered with the University of California San Diego Center for Microbiome Innovation (CMI) to reinforce research into the microbiome’s impact on human health.
The company has also been bolstering its personalized nutrition capabilities with a string of acquisitions, most recently of technology-based functional medicine platform LivingMatrix. NHSc also acquired personalized vitamin business Persona last August.
A step toward completing the acquisition
In addition to divesting Zenpep, AbbVie and Allergan have also agreed for AstraZeneca to recover the global development and commercial rights to brazikumab. The antibody is an investigational IL-23 inhibitor in Phase 2b/3 development for Crohn’s Disease and in Phase 2 development for ulcerative colitis.
“These definitive agreements represent significant progress toward the completion of our acquisition of Allergan,” says Richard A. Gonzalez, Chairman and CEO of AbbVie. “The new combined organization will be well-positioned to deliver on our mission to patients with a broad portfolio of innovative therapies.”
The closings of the acquisitions of brazikumab and Zenpep are contingent upon receipt of US Federal Trade Commission and European Commission approval, closing of AbbVie’s pending acquisition of Allergan and the satisfaction of other customary closing conditions. This is expected to occur in the first quarter of 2020.
“Today, we move another step closer to completing AbbVie’s acquisition of Allergan. Allergan’s commercial and R&D teams have invested so much of themselves into the development of brazikumab and the commercialization of Zenpep, and these divestiture agreements will enable that work to continue following the close of our planned acquisition,” concludes Brent Saunders, Chairman and CEO of Allergan.
By Katherine Durrell
