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news.Nestle Health Science is investing $145m for a 15% stake in Aimmune Therapeutics, a clinical-stage biopharmaceutical firm which develops treatments for people with life-threatening food allergies.
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The company will buy nearly seven million newly issued Aimmune’s common stock shares each priced at $19.20.
Both Aimmune and Nestlé Health Science have also agreed to collaborate on the development and commercialization of new food allergy therapies for a two-year period.
Aimmune's Characterized Oral Desensitization ImmunoTherapy (CODIT) approach aims to achieve meaningful levels of protection by desensitizing patients with defined, precise amounts of key allergens.
Under the deal, Aimmune will continue to own all existing and future pipeline assets developed with the CODIT approach.
The assets include the investigational oral biologic desensitization therapy for peanut allergy dubbed AR101, which is presently in phase 3 clinical development.
Aimmune CEO Stephen Dilly said: “This significant investment will put us in a strong cash position of more than $300m 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.”
Nestlé Health Science CEO Greg Behar said: “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.”
The equity investment is expected to close by the year end and is subject to certain customary conditions.
Through the strategic collaboration, both parties can engage on the Aimmune’s current and future oral immunotherapy development programs by establishing a newly pipeline forum.
Aimmune will be provided with Nestlé Health Science’s scientific, regulatory, and commercial expertise during the collaboration period.
According to the agreement, any development milestones, product marketing rights or royalties will be excluded in the investment and the collaboration.