Nestle Bets €40M On Enterome's Preclinical Food Allergy, IBD Hopeful - Nestle (OTC:NSRGY), Nestle (OTC:NSRGF)

France-based Enterome signed a strategic R&D collaboration and license agreement with Nestlé SA's NSRGF Health Science, targeting food allergies and inflammatory bowel disease (IBD).
Enterome's internal pipeline is more focused on cancer, with phase 1/2 trials of two drug candidates underway in indications including recurrent glioblastoma and B-cell malignancies.
The biotech is also working on a Crohn's disease prospect that is in phase 2 development in partnership with Takeda Pharmaceutical Co Ltd TAK.
Now, Enterome has found a partner for its lead EndoMimics compound designed to create orally available drugs based on proteins secreted by gut bacteria.
Nestlé will pay €40 million in cash and equity, clinical, and sales milestone payments for each licensed therapeutic candidate, plus royalties on net sales.
Nestlé will co-develop EB1010 designed to treat inflammatory bowel disease by inducing high local secretion of the anti-inflammatory cytokine IL-10.
Enterome will be responsible for leading drug discovery activities and bear related costs up to the investigational new drug (IND) application.
EB1010 is due to enter clinical trials in 2023.
Price Action: NSRGF shares are down 0.20% at $117.43 during the market session on the last check Monday.