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Nestle Throws It’s Hat Into The Medicine Business

Dorathy Gass

While most people associate Nestlé with its food and beverage products, the company recently took a big step into the medicine industry by signing a collaborative agreement with a Swiss biotech firm called AC Immune. Two organizations are looking to partner up and create a diagnosis test for Alzheimer’s.

Yahoo News reports that while the financial logistics were not provided, AC Immune stated it is looking to produce a diagnostic assay for Tau (a protein associated with Alzheimer’s) with the Nestle Institute of Health Sciences, that would be minimally invasive to patients. In related news, AC Immune has also signed a deal, separate from their one with Nestle, to create a new ulcerative colitis treatment.

This marks Nestlé’s second deal this week, in relation to the medicine business; and may be a huge indication that the largest packaged foods company in the world is looking to earn a profit by entering the healthcare sector, in lieu of a processed-foods industry that is declining in many markets. In the past two years Nestle has been dipping into projects that involve healthcare; ones that potentially can increase revenues for the company that general deals with chocolate, cookies, and coffee.

Nobert Waldschmidt, Liberum analyst noted that Nestlé’s size, clout and expertise makes them clear candidates to move forward into the medical field direction. He goes on to say that the company has a strong commitment in the health sciences business currently.

While medical products may be a small part of Nestlé’s business currently (which, in addition to the above include injectable skin wrinkle treatments), Waldschmit predicts that healthcare initiatives may make up at least one-tenth (or more) of the company’s revenues in the future.

Currently, Nestlé’s most popular brands include: KitKat, Nescafé, Nespresso, Toll House, Maggi, and Coffee-mate. They also dabble in baby foods, cereal, bottled water, frozen foods, ice cream, and pet food.

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