Nestlé parts with peanut allergy treatment Palforzia

Peanut allergies proved a tough nut to crack for Nestlé, which announced Monday it has divested its treatment Palforzia to Swiss allergy specialist Stallergenes Greer.

Nestlé acquired Palforzia in its $2.6 billion takeover of Aimmune in 2020, months after the peanut powder pill became the first FDA-approved treatment for peanut allergy. The idea is to gradually expose patients to small but increasing amounts of the allergen to build resistance. Nestlé had high hopes for Palforzia, but CEO Mark Schneider said on an investor call in November that it ended up being more of a “niche therapy” than a blockbuster.

The company kicked off a strategic review last year, blaming Palforzia’s low uptake on the pandemic and lower-than-expected patient retention and allergist adoption. Patients must spend a considerable amount of time at the doctor’s office when escalating doses due to a risk of anaphylactic shock.

Greg Behar

Divesting Palforzia will allow Nestlé to “focus on its core strengths,” Nestlé Health Science CEO Greg Behar said in a news release Monday. Meanwhile, Stallergenes Greer touts the deal as a “significant milestone” marking its entry into the food allergy space. Previously, the company had been focused on respiratory allergies.

While the companies have not disclosed the financial terms of the deal, Nestlé said it’s in line to receive milestone payments and royalties. Both parties said patients will have “uninterrupted access” during the transition.

“It is our hope that any company that acquires Palforzia understands the importance of this much-needed therapy for the food allergy community,” Kenneth Mendez, president and CEO of the Asthma and Allergy Foundation of America, said in an emailed statement to Endpoints News on Tuesday. “Importantly, Palforzia is covered by many insurance plans whereas non-FDA approved therapies often have high out-of-pocket costs that limit access to those who can afford it.”

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