Nestle's $6,000 Peanut Allergy Pill Has Been a Dud

An anonymous reader quotes a report from Bloomberg: When Nestle SA's peanut allergy medicine first hit the market in 2020, Robert Wood, the director of pediatric allergy at Johns Hopkins Hospital in Baltimore, started preparing to offer it to the children he treats. But Covid-19 soon derailed in-person treatment, so over the next year and a half Wood and his colleagues told some 1,000 patients about the new drug instead, suggesting they consider it when the pandemic abated. Their responses came as a shock. Only six people were interested in a medicine that had been billed as a game changer for life-threatening allergies -- the first of its kind to be cleared by US authorities. Three years later, Wood has yet to prescribe the drug, Palforzia, and he isn't alone. Doctors and patients from California to Germany appear to be shunning the medicine in favor of the tried-and-true prescription for sufferers: simply avoiding peanuts and carrying an adrenaline injection for emergencies. Nestle's chief executive officer, Mark Schneider, admitted as much in November, conceding that the drug's uptake had been slow. Schneider in 2020 bought out Palforzia's developer for $2.6 billion, paying a staggering 174% premium as he sought to take "the science business to the next level," snapping up vitamin makers such as Puritan's Pride and Solgar as well. The company is looking for a buyer, and the Swiss food giant says it will have to recognize a significant impairment to the deal's original value -- likely presaging a big writedown at a time when its core grocery business faces pressure from inflation. Maybe the company known for Nespresso capsules and Kit Kat chocolate wafers was never the right owner for a complex-to-administer niche medicine, but Schneider is on the hunt to find new avenues of growth in keeping with his strategic tilt toward health and wellness. The CEO "is looking to make acquisitions in new areas, and that inherently carries risks," says Martin Deboo, an analyst at Jefferies. "Palforzia is a signal of that." Nestle reiterated its commitment to nutritional health in an email and said Palforzia is safe and effective and solves the problem of variable potency that can hobble efficacy or trigger an allergic reaction with other less stringent treatments. The product is essentially peanut protein that's been packed in a pill, standardized and categorized as a medicine after meeting the Food and Drug Administration's exacting clinical-trial requirements on safety and efficacy. By exposing children to tiny but gradually increasing amounts of the ingredient, Palforzia slowly raises their sensitivity threshold. But the process requires commitment by parents and kids to a demanding regime that lasts more than a year. [...] Palforzia is not without risk. During the clinical trials, about 9% of children suffered potentially dangerous immune reactions when their doses were being increased. [...] Bloomberg notes that Germany's Institute for Quality and Efficiency in Health Care concluded that Nestle's drug "doesn't offer any advantage over peanut avoidance." A UK panel that assess medicines' cost-effectiveness also found the drug to be quite expensive, costing about $6,220 per patient in England. "As for Wood at Johns Hopkins, he says the allergy center would've lost money administering Palforzia -- something it was willing to do if there had been enough interest among patients. When asked whether some patients might've gone elsewhere for Palforzia, Wood says probably not."

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