Nestle Buys Phagenesis

Nestle Health Science backs medical device company developing product to help consumers swallow food.

Nestle / Photo: nbcnews.com
Nestle / Photo: nbcnews.com

A September 1st Reuters article announced Nestle Health Science will buy British medical device company Phagenesis in phases. The deal will consist of an undisclosed upfront payment followed by milestone-based funding related to Phagenyx, a device that employs electrical stimulation to help sufferers of dysphagia, a condition that usually affects stroke survivors’ ability to swallow.

The deal is the latest in Swiss-based Nestle’s acquisition schedule in the area of medicine that marries food and pharmaceuticals. "It could be the start of many more to come," said Jon Cox, an analyst at Kepler Cheuvreux. "Nestle has made a clear statement of intent with the appointment of Ulf Mark Schneider to become CEO that it will develop its health and nutrition business."

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