Burnt by biotech play, Nestle passes on Palforzia

5 September 2023

Palforzia was going to be the keystone product in Nestle’s (NESN: VX) strategic expansion into biotech, but the Swiss food and drink giant has finally thrown in the towel.

Nestle has already written off the majority of the investment, taking a $2.1 billion impairment charge in February, and is now selling the product to Swiss immunotherapy company Stallergenes Greer.

In a very brief statement, Nestle said it would “receive milestone payments and ongoing royalties,” while declining to provide further financial details.

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