Nestlé acquires Allergan’s Zenpep to expand medical nutrition business
Category: #health  By Saipriya Iyer  Date: 2020-01-28
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Nestlé acquires Allergan’s Zenpep to expand medical nutrition business

Nestle, a Swiss food and beverage giant, has recently expanded its medical nutrition business by entering an asset purchase agreement to acquire Allergans Zenpep, for undisclosed sum. Nestle will take ownership of Zenpep upon closing the strategic transaction and leverage broad capabilities to drive rapid innovation. Zenpep is expected to complement Nestles portfolio of therapeutic products.

Zenpep is a medication prescribed to patients with EPI (Exocrine Pancreatic Insufficiency). EPI patients cannot digest foods properly due to inadequate enzyme production in their pancreases. Consumption of this medicine aids the digestion and absorption of fats, sugars, and proteins from foods.

In 2018, the net sales of Zenpep product accounted for $237 Mn worldwide. The ongoing business expansion i.e., the sale of Zenpep by Irish-domiciled producer of medicinal drugs, Allergan, to treat patients with EPI, along with the regulatory approval of AbbVies $63 billion acquisition of Allergan happened simultaneously.

Nestle announced that the deal would be finalized in conjunction with the closing of the acquisition deal between AbbiVie and Allergan, subject to the divestment of some products.

As a growth strategy, the Swiss company has been investing heavily to increase its line of nutritional therapies designed for specific medical conditions. These medicinal products contain ingredients with medicinal properties that can also be consumed as foods.

Mark Schneider, Chief Executive of Nestle, has also signed a deal to acquire a product named Viokace from Allergan, which also deals with pancreatic enzyme preparation for oral administration.

Within the medical nutrition business, the company is working directly with healthcare professionals to educate them about the products’ usage in hospitals, clinics and other healthcare systems.

Nestle Health Science head Greg Behar has reportedly been quoted as stating that the purchase of Allergans Zenpep would provide significant growth opportunity for the company in the United States. He further commented that the addition of complementary products to its existing range of dietary supplements that support food digestion, ingestion, and absorption would help Nestle bulk up its medical nutrition portfolio.
 

Source credit:

https://finance.yahoo.com/news/nestle-buys-allergan-business-expand-062944697.html



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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