Nestlé has sold its Palforzia peanut-allergy treatment business to Stallergenes Greer, a biopharmaceutical company specializing in allergy diagnosis and treatment, according to a release.
Palforzia had been acquired three years ago by Nestlé as part of a $2.6 billion purchase of biopharmaceutical company Aimmune Therapeutics to expand its health sciences division, but demand for the treatment did not materialize as expected, according to news reports.
Those reports explained that pandemic lockdowns hit adoption of Palforzia particularly hard just after it received FDA approval in January 2020, as treatment requires patients to make regular trips to the doctor’s office to receive multiple doses and build up resistance to the peanut allergy.
Nestlé began a strategic review of Palforzia last year, which led to the divestiture, and the company will receive milestone payments and ongoing royalties from Stallergenes Greer. Greg Behar, CEO of Nestlé Health Science, expressed confidence that the new ownership would help Palforzia grow, but Nestlé needs “to focus on its core strengths and key growth drivers” moving forward. The deal was closed upon signing, the release said, and there will be a customary transition period to ensure business continuity.