Nestlé Health Science Invests in Aimmune
News Nov 07, 2016
Aimmune Therapeutics, Inc. announced that Nestlé Health Science will make a $145.0 million equity investment in Aimmune. Aimmune and Nestlé Health Science also entered into a strategic collaboration agreement designed to enable the successful development and commercialization of innovative food allergy therapies. Aimmune will retain all current and future pipeline assets developed with the CODIT approach, including AR101, the company’s investigational oral biologic desensitization therapy for peanut allergy, which is currently in Phase 3 clinical development.
“We are extremely pleased that Nestlé Health Science, a global leader in food allergy management, is making this investment in Aimmune, as it reflects our shared commitment to reducing the risk and burden of food allergies affecting millions of people worldwide,” said Aimmune CEO Stephen Dilly, M.B.B.S., Ph.D. “This significant investment will put us in a strong cash position of more than $300 million and enables important additional pipeline advancement activities beyond AR101 for peanut allergy.
“Nestlé Health Science is an ideal partner that brings a shared vision, global scale and complementary capabilities to this collaboration, making the whole more than the sum of the parts,” continued Dr. Dilly. “We are excited to have Nestlé Health Science alongside as we pursue our development plans and seek to realize the full promise of our CODIT approach by addressing the important questions in food allergy around optimizing treatments, achieving sustained unresponsiveness, and exploring the science around tolerance.”
Greg Behar, CEO of Nestlé Health Science, who will join the Aimmune Board, stated: “Food allergies have a huge personal impact and are a health economic burden. Nestlé Health Science is investing and innovating to change the approach to food allergy management, with integrated approaches from diagnostics (Dx) to nutrition solutions (Nx) and now biologics (Rx), where Aimmune’s proprietary approach has transformational potential in the lives of patients and families.”
Upon closing of the equity investment, Aimmune will receive a payment of $145.0 million in connection with Nestlé Health Science’s purchase of 7,552,084 newly issued shares of Aimmune’s common stock at $19.20 per share, which corresponds to a 15 percent stake after the completion of the transaction.
The investment launches a two-year strategic collaboration between Nestlé Health Science and Aimmune, the terms of which enable the parties to engage on Aimmune’s current and future oral immunotherapy development programs through a newly established pipeline forum. Nestlé Health Science will provide ongoing scientific, regulatory, and commercial expertise and advice to Aimmune through the pipeline forum.
The transaction has been approved by the boards of directors of both companies. The companies expect to close the equity investment by the end of 2016.
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