Nestlé Health Science, a subsidiary of food and nutrition product maker Nestlé, agreed yesterday to acquire UK-based medical device producer Phagenesis, allowing Nestlé-backed venture firm Inventages Venture Capital to exit.
The purchase price was not disclosed but a person familiar with the acquisition told the Wall Street Journal medical device companies of a similar size to Phagenesis ‘typically sell for £100m ($133m)’.
Founded in 2007, Phagenesis is the developer of a device called Phagenyx to treat dysphagia, a condition where a patient has problems safely swallowing. The device sends an electrical signal to the back of a patient’s throat to kick-start neurological control of swallowing.
Reinhard Krickl, chief exceutive of Phagenesis, said: “Nestlé Health Science is the leading global player in dysphagia with capabilities and reach to enable Phagenesis to accelerate the development and deployment of Phagenyx to patients around the world.”
Phagenesis had raised roughly $20m in total, securing approximately $3m in seed capital from undisclosed investors in 2010 before closing a $17m series B round led by Inventages in 2013, the $9.1m first tranche of which was raised in 2011.
The company’s technology is based on research conducted at Manchester University, in the UK. Investment firm Anglo Scientific will also exit Phagenesis in the deal.
