Nestle steps up its push into medicine with a global deal worth up to 100 million euros ($111 million) to develop an experimental milk allergy test for infants. Grace Pascoe reports.
The world's largest food company is making a foray into the medical arena. Nestle's purchasing the rights to a testing kit for infants with milk allergies. (SOUNDBITE) (English) SEVEN INVESTMENT MANAGEMENT, MARKETING DIRECTOR, JUSTIN URQUHART-STEWART, SAYING: "I think it is a very interesting strategic development. You have to look at it in many ways as the Venn diagram of the Nestle world primarily of confectionery, and the medical world over here. Actually there is a sort of overlap of those two circles into a Venn diagram where there are medical confections if that sort of makes sense... So a combination of those elements I think is actually very constructive." Swiss Nestle are set to pay the current owners, France's DBV Technologies, 10 million euros up front, with a further 90 million dependent on successful development of the skin patch test. As well as developing and marketing the experimental kit for cow's milk protein allergy Nestle want to raise awareness of the condition In a bid to boost sales of products for babies with food intolerance. (SOUNDBITE) (English) SEVEN INVESTMENT MANAGEMENT, MARKETING DIRECTOR, JUSTIN URQUHART-STEWART, SAYING: "This does not mean that Nestle is going to become the next Glaxo or anything like that... There is a logical development there. If they can achieve it, so much the better, frankly I'll believe it when I see it, or taste it." Nestle sees big opportunities in health And hopes it will eventually generate 10 billion dollars worth of business. DVB's shares rose 5 percent on the news.