Swiss food group, Nestle unveiled Monday a new medical nutrition business to develop products it says will treat diseases including diabetes in the next decade.
Nestle SA said it aims to "pioneer a new industry between food and pharma" by creating a medical nutrition institute in Switzerland and a subsidiary called Nestle Health Science SA.
According to Nestle Chief Executive, Paul Bulcke at a media conference Monday, the market was still crystallizing, with some estimating it at $100 billion to $150 billion. Nestle Health Science will be operational from January 1, 2011 and will research foods that can improve health and longevity as consumers increase health awareness and proper eating. The company said the new division will be run "at arm's length" from the main food and beverages business.It will be run at arm's length from Nestle's main food, beverages and nutrition activities, the group said, and will include its current HealthCare Nutrition unit which earned 1.63 billion in 2009.The new division to be led current head of Americas operations, Luis Cantarell, will receive a boost of 500 million francs over the next decade.The Nestle share price rose 0.7 percent to 53.10 Swiss francs following the announcement