Nestlé to acquire biopharma company, Aimmune Therapeutics
Aimmune's Palforzia is an FDA-approved treatment to help reduce the frequency and severity of allergic reaction to peanuts
Nestlé and Aimmune Therapeutics, a biopharma company developing and commercialising treatments for potentially life-threatening food allergies, have entered into a definitive agreement pursuant to which Nestlé Health Science (NHSc) would acquire Aimmune. Aimmune’s Palforzia is the first and only FDA-approved treatment to help reduce the frequency and severity of allergic reaction to peanuts, including anaphylaxis, in children aged 4 through 17. The acquisition is an extension of NHSc’s food allergy portfolio.
Up to 240 million people worldwide suffer with food allergies, peanut allergy being the most common. Palforzia offers a long sought-after solution for peanut-allergic patients other than avoidance.
“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment. Together we will be able to offer a wide range of solutions that can transform the lives of people suffering from food allergies around the world,” said Greg Behar, CEO, Nestlé Health Science.
“Delivering Palforzia, the world’s first treatment for food allergy, has been a game-changing proposition in the biopharma industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy. This acquisition ensures a level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies,” said Jayson Dallas, MD, President and CEO of Aimmune.
NHSc currently has a total investment in Aimmune of $473 million, an approximate 25.6 per cent equity ownership stake. Around 19.6 per cent is voting common stock and the balance non-voting preferred stock. NHSc made its initial investment of $145 million in Aimmune in November 2016, followed by further investments of $30 million in February 2018, $98 million in November 2018 and $200 million in January 2020.
Nestlé plans to finance the transaction with cash on hand. Subject to the satisfaction or waiver of customary closing conditions, the transaction is expected to close in the fourth quarter of 2020.