08.31.20
Nestlé Health Science has entered into an agreement to acquire the biopharmaceutical company Aimmune, which specializes in products targeting food allergy and prevention. Recently, the company received an approval on its therapy Palforzia, which is the first and only FDA-approved treatment to help reduce the frequency and severity of life-threatening allergic reactions to peanuts, including anaphylaxis, in children between the ages of 4 and 17 years old.
The acquisition will be an extension of Nestlé Health Science’s food allergy portfolio, creating a broader spectrum of products designed for children living with food allergies, which affect up to 240 million people worldwide. Palforzia offers a solution for peanut-allergic patients beyond avoidance.
Palforzia is similar to other oral immunotherapies - patients ingest controlled, increasing amounts of the drug until the patient can form a tolerance to larger amount of peanut than before.
“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment,” said Greg Behar, Nestlé Health Science CEO. “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.”
“The agreement with Nestlé Health Science recognizes the value created by years of commitment and dedication to our mission by the team at Aimmune,” Jayson Dallas, MD, president and CEO of Aimmune, said. “Delivering Palforzia, the world’s first treatment for food allergy, has been a game-changing proposition in the bio-pharmaceutical industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy. This acquisition ensures the level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies.”
Nestlé Health Sciences has a total investment in Aimmmune of $473 million USD, an approximate 25.6% equity ownership stake. Around 19.6% is voting common stock and the balance non-voting preferred stock. Nestlé Health Sciences 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.
The acquisition is expected to be accretive to Nestlé’s organic growth in 2021 and accretive to cash earnings by 2022/23.
The acquisition will be an extension of Nestlé Health Science’s food allergy portfolio, creating a broader spectrum of products designed for children living with food allergies, which affect up to 240 million people worldwide. Palforzia offers a solution for peanut-allergic patients beyond avoidance.
Palforzia is similar to other oral immunotherapies - patients ingest controlled, increasing amounts of the drug until the patient can form a tolerance to larger amount of peanut than before.
“This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment,” said Greg Behar, Nestlé Health Science CEO. “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.”
“The agreement with Nestlé Health Science recognizes the value created by years of commitment and dedication to our mission by the team at Aimmune,” Jayson Dallas, MD, president and CEO of Aimmune, said. “Delivering Palforzia, the world’s first treatment for food allergy, has been a game-changing proposition in the bio-pharmaceutical industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy. This acquisition ensures the level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies.”
Nestlé Health Sciences has a total investment in Aimmmune of $473 million USD, an approximate 25.6% equity ownership stake. Around 19.6% is voting common stock and the balance non-voting preferred stock. Nestlé Health Sciences 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.
The acquisition is expected to be accretive to Nestlé’s organic growth in 2021 and accretive to cash earnings by 2022/23.
