(Reuters) – Nestle Health Science has invested $65 million in U.S.-based drugmaker Seres Health Inc, the latest move by its parent company Nestle to diversify away from packaged food.
Nestle has been expanding its reach into the fast-growing market for healthcare products that have higher margins than the instant soups, breakfast cereals and coffee the world’s biggest food group is generally known for.
The investment will help fund the next stage of development of Seres’ lead product candidate against clostridium difficile infection (CDI) – a bacterial infection of the digestive system – into late-stage clinical trials and help advance its other treatments against infectious, metabolic and inflammatory diseases, Nestle said on Tuesday.
Nestle Health Science also said on Tuesday it had entered into a strategic partnership with Seres’ venture capital backer, Flagship Ventures, to support start-ups working on nutritional health and therapy in view of potential further minority direct investments, licensing deals, joint ventures or acquisitions.
Nestle set up Nestle Health Science in 2011 to develop new therapeutic approaches for gastrointestinal, metabolic and brain disorders and other health conditions.
(Reporting by Silke Koltrowitz; editing by Susan Thomas)