Nestlé Health Science Company Profile

Background

Founded in 2011, Nestlé Health Science (NHSc) is a globally recognized leader in nutritional science, dedicated to redefining health management through innovative nutrition solutions. The company's mission is to empower healthier lives by merging nutrition, science, and wellness, offering a comprehensive portfolio that spans active lifestyle nutrition, medical nutrition, and pharmaceutical therapies. NHSc operates as a subsidiary of Nestlé S.A., the world's largest food and beverage company, and is headquartered in Vevey, Switzerland.

Key Strategic Focus

NHSc's strategic focus centers on delivering science-based nutritional solutions that enhance health and quality of life. The company specializes in three primary business units:

• Active and Medical Nutrition: Providing products that support active lifestyles and address specific medical nutritional needs.

• Vitamins, Minerals, and Herbal Supplements (VMHS): Offering a wide range of supplements to support overall health and wellness.

• Pharmaceutical Therapies: Developing and commercializing pharmaceutical solutions for various health conditions.

NHSc targets diverse markets, including consumers seeking wellness products, patients requiring medical nutrition, and healthcare professionals. The company leverages advanced technologies and scientific research to develop innovative products that meet the evolving needs of these markets.

Financials and Funding

In 2022, NHSc reported net sales of $4.5 billion, reflecting its strong market presence and successful integration of acquired brands. The company's growth strategy includes strategic acquisitions to expand its portfolio and enhance its capabilities. Notable acquisitions include:

• Atrium Innovations (2017): Acquired for $2.3 billion, adding brands like Garden of Life and Pure Encapsulations to NHSc's portfolio.

• Vital Proteins (2020): Initially acquiring a majority stake, NHSc fully integrated the leading collagen brand into its operations by 2022.

• The Bountiful Company (2021): Acquired core brands such as Nature’s Bounty, Solgar, Osteo Bi-Flex, and Puritan’s Pride for $5.75 billion.

• Orgain (2022): Acquired a majority stake in the plant-based nutrition leader, with an option to fully acquire the company in 2024.

These acquisitions have been instrumental in strengthening NHSc's position in the nutrition and health sectors.

Pipeline Development

NHSc is actively involved in developing innovative nutritional and pharmaceutical products. Key pipeline developments include:

• SER-109: In collaboration with Seres Therapeutics, NHSc is co-commercializing SER-109, an investigational oral microbiome therapeutic for recurrent Clostridium difficile infection. If approved, it would be the first FDA-approved microbiome therapeutic.

• Urolithin A: Partnering with Amazentis, NHSc has developed Urolithin A, a natural bioactive that improves mitochondrial function by activating mitophagy, potentially benefiting muscle health and aging.

These developments underscore NHSc's commitment to advancing health through cutting-edge nutritional science.

Technological Platform and Innovation

NHSc differentiates itself through proprietary technologies and scientific methodologies, including:

• CodeEvolver Protein Engineering Platform: Through a partnership with Codexis, NHSc utilizes this platform to create novel enzymes for future innovations.

• Microbiome Therapeutics: Collaborations with companies like Seres Therapeutics and Enterome Bioscience enable NHSc to develop microbiome-based therapies targeting conditions such as inflammatory bowel disease and metabolic disorders.

• Personalized Nutrition: Investments in companies like Persona Nutrition and Before Brands allow NHSc to offer tailored nutritional solutions based on individual health needs and genetic profiles.

These innovations position NHSc at the forefront of nutritional science and personalized health solutions.

Leadership Team

NHSc's leadership comprises experienced professionals dedicated to advancing the company's mission:

• Greg Behar: Chief Executive Officer

• Eric Bouchard: Chief Financial Officer

• Abigail Buckwalter: President of Professional Health, NHSc US and Global Head of Strategy, Marketing, and Innovation

• Claudio Kuoni: General Counsel

Their collective expertise drives NHSc's strategic initiatives and operational excellence.

Leadership Changes

In 2021, Don Kerrigan was appointed CEO of NHSc U.S., bringing extensive experience from his previous role as President of North America at The Bountiful Company. This leadership change reflects NHSc's commitment to strengthening its position in the U.S. market.

Competitor Profile

Market Insights and Dynamics

The global health science and nutrition market is experiencing significant growth, driven by increasing consumer awareness of health and wellness, aging populations, and a rising prevalence of chronic diseases. NHSc operates in a competitive landscape with several key players.

Competitor Analysis

• Perrigo: Headquartered in Dublin, Ireland, Perrigo operates in the health care equipment and services sector, generating approximately 54% of NHSc's revenue.

• Baxter: Based in Deerfield, Illinois, Baxter focuses on health care equipment and services, employing 48,000 more staff than NHSc.

• B. Braun: Located in Melsungen, Germany, B. Braun operates in the health care equipment industry, generating 113% of NHSc's revenue.

These competitors highlight the dynamic and competitive nature of the health science and nutrition industry.

Strategic Collaborations and Partnerships

NHSc has established significant collaborations to enhance its market position and innovation capacity:

• Seres Therapeutics: Co-commercializing SER-109, an investigational oral microbiome therapeutic.

• Amazentis: Developing Urolithin A to improve mitochondrial function.

• Codexis: Utilizing the CodeEvolver platform for novel enzyme creation.

• DBV Technologies: Collaborating on a diagnostic tool for cow’s milk protein allergy in infants.

These partnerships enable NHSc to leverage external expertise and accelerate product development.

Operational Insights

NHSc's strategic considerations include:

• Market Position: Leveraging its diverse portfolio and global presence to maintain a competitive edge.

• Competitive Advantages: Emphasizing scientific research, innovation, and strategic acquisitions to differentiate its offerings.

• Sustainability Initiatives: Committing to reducing greenhouse gas emissions, sourcing sustainable ingredients, and minimizing plastic use to align with consumer expectations and regulatory requirements.

These operational strategies position NHSc for sustained growth and leadership in the health science sector.

Strategic Opportunities and Future Directions

NHSc's strategic roadmap includes:

• Personalized Nutrition: Expanding offerings to provide tailored nutritional solutions based on individual health profiles.

• Global Expansion: Leveraging recent acquisitions to enter new markets and strengthen its global footprint.

• Innovation: Continuing to invest in research and development to introduce cutting-edge products that address emerging health needs.

By capitalizing on these opportunities, NHSc aims to enhance its impact on global health and wellness.