Nestle Health Science agrees to conditional purchase of Phagenesis

Nestlé Health Science (NHSc; Epalinges, Switzerland) announced on Sept. 1 that it has entered into a staged, milestone-based acquisition of medical device company Phagenesis. The company, which is headquartered in Manchester, UK, has developed a new treatment for dysphagia, the inability to swallow safely.

Under the terms of the agreement, NHSc will make an upfront payment, followed by milestone-based funding, while Phagenesis completes the clinical evaluation of its Phagenyx device, according to a news release. The staged acquisition will be based upon successful completion of European and U.S. development programs anticipated by 2019. Financial terms were not disclosed.

Dysphagia occurs in around 29% to 55% of stroke patients, with 15 million people worldwide suffering a stroke every year, according to data cited by Nestlé in the release. It is also a common consequence of numerous other diseases, and is often under-diagnosed in various patient populations.

Current available options can improve the status and symptoms of dysphagia, but few treat the cause. Phagenesis has developed Phagenyx, a medical device designed to restore the neurological control of swallowing. Phagenyx is based on groundbreaking research that establishes a mechanism of action of delivering Pharyngeal Electrical Stimulation to treat the neurological cause of dysphagia. In essence, it restores neurological control of swallowing by kick-starting the re-organization of the brain, explains Phagenesis.

Gunnar Weikert, Director of Phagenesis and founder of Inventages Venture Capital, commented: "As a long-term investor in Phagenesis, we are pleased about this significant investment by Nestlé Health Science."

Greg Behar, CEO of Nestlé Health Science, stated: "Dysphagia is a strategic focus for Nestlé Health Science. This innovation can bring a new dimension to swallowing rehabilitation that can be transformational from a patient and healthcare professional perspective."

A wholly owned subsidiary of food and beverage giant Nestlé, NHSc is focused on advancing nutritional therapy technology and employs approximately 3,000 people worldwide.