From: Industry Week
The world’s biggest food group Nestle (IW 1000/37) is moving into traditional Chinese medicine by joining forces with Chinese pharma group Chi-Med, the Swiss group said on Wednesday.
The new entity, called Nutrition Science Partners (NSP), is to be owned equally by the two parties, Nestle said, without revealing any of the financials behind the deal. NSP will research, develop, make and sell nutritional and medicinal products derived from botanical plants, it said.
The joint venture will also hand Nestle’s Health Science division, which is handling the deal, access to Chi-Med’s traditional Chinese medicine library, which with more than 50,000 extracts from more than 1,200 different herbal plants is one of the world’s largest, the statement said.
Initially, the product focus will be on gastro-intestinal health — a market worth up to $6 billion according to Chi-Med — but could in future expand into metabolic diseases and brain health
Nestle says venture is ‘opportunity to develop and commercialize truly innovative and scientifically validated botanical-based nutrition for personalized healthcare in gastro-intestinal health.’
Reading between the lines one suspects this is simply Nestles attempt to enter the lucrative Chinese Medicine market. If it harbours any genuine hopes of expanding into brain health than it may be sadly disappointed by this deal.