Summary Box: Nestle plans to start new medical nutrition business and make $500M investment

Summary Box: Nestle makes medical nutrition splash

PONYING UP TO SLIM DOWN: The company will expand its medical nutrition unit and start operating Nestle Health Science SA on Jan. 1. It will spend about $500 million over the next decade. The business will make foods that it says will help consumers prevent or treat diseases like obesity, diabetes, and heart disease.

HUNGRY MARKET: The Swiss company believes the market for nutritional foods could eventually be worth more than $100 billion.

LUNCH MONEY: Nestle is sitting on a sizable war chest following the sale of its stake in eye care company Alcon to Novartis for a net profit of $45 billion.