Food group Nestle has signed a research collaboration agreement with a Swiss biotech company AC Immune to develop a diagnostic drug for Alzheimer's disease, Reuters reports
This is Nestle's second medical deal in a week. Last week, it had signed a separate deal to develop a new treatment for ulcerative colitis.
The financial terms of the deal were not disclosed.
Nestle's foray into the medical field underscores the company's policy to make its presence felt in the fast-growing and more profitable medical field as sales of processed foods are now decreasing in many markets around the world.
"Clearly, Nestle's got the size, clout and expertise to push in a particular direction," said Liberum analyst Robert Waldschmidt, according to Reuters
"They have a real commitment to their health sciences business now."
The Swiss biotech firm AC Immune said it would develop a minimally invasive diagnostic assay for Tau, a protein that causes tangles in the brain, with the Nestle Institute of Health Sciences.
AC Immune has already established ties with Roche in the drug research.
Over the last two years, Nestle has been investing in the market for healthcare products, which have higher margins than the processed foods it is widely known for.
