NSRGY Nestle SA (PK)

By Saabira Chaudhuri 

Nestlé SA has struck a deal to buy a U.K.-based maker of a device to treat dysphagia, a condition in which people have difficulty swallowing, marking the Swiss food company's latest push into the area of health.

Terms of the deal to buy Phagenesis weren't disclosed.

Nestlé will make an upfront payment followed by funding in stages based on the successful completion of clinical development programs in Europe and the U.S., which Nestlé said is expected by 2019.

Phagenesis makes an electrical stimulation device designed to restore the neurological control of swallowing by kick starting the reorganization of the brain. The device is aimed at treating swallowing difficulties commonly experienced by post stroke patients, but also by elderly patients and people that have been put on mechanical ventilation in intensive care units.

Nestlé estimates dysphagia occurs in 29% to 55% of stroke patients, with 15 million people world-wide suffering a stroke every year.

Manchester-headquartered Phagenesis, which was formed in 2007, said it has developed the only treatment for neurogenic dysphagia based on pharyngeal electrical stimulation, treating the cause rather than just the symptoms. The company's investors include London-based Inventages Venture Capital and London-based Anglo Scientific.

The device is sold in Europe but not currently in the U.S. Phagenesis' revenue wasn't disclosed.

"Dysphagia is a strategic focus for Nestlé Health Science," said Greg Behar, CEO of the Nestlé unit. "This innovation can bring a new dimension to swallowing rehabilitation that can be transformational from a patient and health care professional perspective."

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

September 01, 2016 09:03 ET (13:03 GMT)

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