Nestlé Sells Gut-Health Test Maker Prometheus Labs, Layoffs Expected

Prometheus Laboratories, which was acquired by Nestlé Health Science eight years ago, has been sold to Precision IBD, who plans to lay off around a quarter of Prometheus' staff, Xconomy reported.

The deal, which closed June 30, transfers nearly all of the gastroenterological diagnostic testing service company to Precision IBD.

Nestlé Health is keeping the Prometheus point-of-care diagnostic business, which will stay in San Diego, California, under the name Procise Dx, and employ a limited number of people, according to a Nestlé Health spokeswoman.

By the end of this year, Precision IBD plans to lay off 72 of the roughly 280 people that Prometheus employed at the time of the sale, according to a filing with the California Employment Development Department.

"The decision to divest Prometheus follows a review of the Nestlé Health Science global business portfolio, which is conducted periodically to assure continued alignment of Nestlé Health Science’s top strategic priorities," said the spokeswoman, adding that Nestlé Health is not disclosing financial terms of the transaction.

According to the news source, Precision IBD's chief medical officer, Steph Targan, is a co-founder of Prometheus.