International law firm Taylor Wessing has advised Phagenesis, the medical device company that has developed a new treatment for dysphagia, on its staged, milestone-based acquisition by Nestlé Health Science.

Under the terms of the agreement, Nestlé Health Science will make an upfront payment, followed by milestone-based funding, while Phagenesis completes the clinical evaluation of Phagenyx. The staged acquisition will be based upon successful completion of European and US development programs anticipated by 2019. Financial terms have not been disclosed.

Dysphagia, the inability to swallow safely, is a condition with high prevalence as well as high clinical and health economic burden. Phagenesis has developed Phagenyx, a novel medical device designed to restore the neurological control of swallowing. Phagenyx is based on ground breaking research that establishes a mechanism of action of delivering Pharyngeal Electrical Stimulation (PES) to treat the neurological cause of dysphagia.

Reinhard Krickl, CEO of Phagenesis, commented “It has been a pleasure working with Andrew Davis, Alexandra Richardson and the rest of the Taylor Wessing team on this critical transaction for Phagenesis. They have guided us through a complex process with great skill and have taken a commercial and pragmatic approach throughout the negotiations.”

Andrew Davis, Partner in the Corporate Technology group at Taylor Wessing said “It has been a privilege to work with the Phagenesis team on this transaction, which will see Phagenesis continue to accelerate the development of Phagenyx to address this unmet medical need. We look forward to seeing where the company will continue to grow from here, during the next phase of its journey.”

The Taylor Wessing team was led by partner Andrew Davis with senior associate Alexandra Richardson. Specialist advice was provided by Ann Casey (Share Schemes), Nikol Davies (Tax) and Colin McCall (IP).