Food group Nestle has taken a further step into the medication business by signing a Swiss biotech company on a research cooperation agreement to come up with an Alzheimer’s disease diagnostic test.
The second medical deal in a week of Nestle underscores the dedication by the largest packaged food company in the world’s to the quicker-growing, more lucrative medical area as sales of processed foods slow in several marketplaces.
Financial terms weren’t revealed.
During the past couple of years, Nestle has been investing in the market for health care products which have higher margins in relation to sweets, soups and the coffee it’s usually understood for.
“Certainly, Nestle’s got the size, pull and expertise to shove in a certain way,” said Liberum analyst Robert Waldschmidt. “They have a real dedication to their health sciences company now.”
Waldschmidt expects that they’ll make up 10 percent of income or more, although Nestle’s medical goods, including injectible skin wrinkle treatments, are now a little portion of its own company.
- Nestle.com. Nestlé Institute of Health Sciences to develop new test for early Alzheimer’s disease. SEP 23, 2015