Nestlé offloads peanut allergy therapy Palforzia to Stallergenes Greer

Nestlé announced Monday the divestment of its peanut allergy treatment business Palforzia (peanut allergen powder-dnfp) to Stallergenes Greer for an undisclosed sum. Nestlé kicked off a review of Palforzia late last year amid lacklustre sales of the oral immunotherapy, also known as AR101.

Palforzia became the first treatment for patients with peanut allergy approved in the US when it was authorised by the FDA in 2020, gaining clearance in the EU later the same year. However, the treatment has struggled to make headway in the US, with CEO Mark Schneider previously noting that despite "high hopes" of becoming a blockbuster, the product looks more like a "very successful niche therapy."

Large impairment charge

Nestlé acquired Palforzia following its takeout of developer Aimmune Therapeutics for $2.6 billion, but took a $2.1-billion impairment charge on the product earlier this year. "We are confident that Stallergenes Greer will take Palforzia forward," remarked Greg Behar, CEO of Nestlé Health Science, adding "the divestiture allows Nestlé Health Science to focus on its core strengths and key growth drivers."

Under the transaction, which closed upon signing, Nestlé will receive milestone payments and ongoing royalties from Stallergenes Greer. On its part, Stallergenes Greer CEO Michele Antonelli remarked "by entering the food allergy space, Stallergenes Greer becomes the first allergen immunotherapy company to offer both respiratory and food allergy treatments." The firm already markets a number of respiratory allergen immunotherapies, including Oralair and Staloral.