The price was undisclosed. Nestle said Monday it will receive milestone payments and royalties from Stallergenes. In July, Bloomberg News reported that Stallergenes had been in talks about a possible deal for the Palforzia treatment.
Nestle acquired the maker of Palforzia in a $2.6 billion deal in 2020 as Chief Executive Officer Mark Schneider made one of his biggest forays into health. However, uptake of the new drug missed expectations and the company launched a strategic review of the therapy in November. Earlier this year, Nestle announced a 1.9 billion franc impairment charge on the peanut medication, writing down the bulk of its value.
Peanut allergy is a widespread condition, the successful treatment of which has eluded Big Pharma for years. Palforzia is essentially peanut protein that’s been packed in a pill. By exposing children to tiny but gradually increasing amounts of the ingredient, it slowly raises their sensitivity threshold.
Stallergenes specializes in allergen immunotherapies. The company has manufacturing sites in France and the US and has a presence in 19 countries, according to its website.