Nestlé Health Science Leads $98 Million Equity Investment in Aimmune Therapeutics to Advance Peanut Allergy Therapy AR101

VCBeat (WeChat ID: vcbeat) has learned that on November 28, 2018 (U.S. local time), Aimmune Therapeutics (NASDAQ: AIMT, hereinafter referred to as “Aimmune”), a California-based biopharmaceutical company dedicated to developing solutions for potentially life-threatening food allergies, announced the completion of an equity financing transaction worth $98 million.

The subscriber in this round of financing remains Nestlé Health Science, a subsidiary of the Swiss food giant Nestlé. Previously, it acquired 7.5 million common shares issued by Aimmune at $19.20 per share during Aimmune’s IPO, for a total of approximately $145 million.

It is understood that the transaction was conducted as a private equity deal, with Nestlé Health Science subscribing to 3,237,529 newly issued ordinary shares of Aimmune at a price of $30.27 per share. Specific details of the acquisition have not been disclosed.

Image source: Aimmune official website

This round of financing will be primarily used to support clinical trials of Aimmune’s lead candidate drug and to prepare for subsequent commercialization.

Aimmune, founded in 2011 and headquartered in San Mateo, California, USA, is a clinical-stage biopharmaceutical company. The company is developing a biological oral immunotherapy for patients with peanut allergy, known as Characteristic Oral Desensitization Immunotherapy (CODIT). Its lead CODIT candidate, AR101, is a biologic agent designed to treat peanut allergy and help patients avoid severe allergic reactions upon accidental exposure to peanuts.

AR101 employs a phased treatment regimen established through CODIT, gradually increasing the dosage on a structured basis to desensitize patients to peanuts over approximately six months. Subsequently, patients will continue to receive a maintenance dose of AR101 to sustain the desensitized state. In 2015, AR101 was granted Breakthrough Therapy Designation by the U.S. FDA, which will provide the product with enhanced support and access to priority review pathways.

On November 18 this year, The New England Journal of Medicine (NEJM) published the landmark Phase 3 PALISADE clinical trial results for AR101. Enrolling more than 550 participants aged 4 to 55 years across the United States, Canada, and Europe, this study represents the largest randomized clinical trial for peanut allergy to date and the first such trial to achieve success. The clinical trial was designed to evaluate the safety and efficacy of AR101 in treating peanut allergy. For detailed results, please refer to Aimmune’s Form 8-K filing submitted to the U.S. Securities and Exchange Commission on November 13.

“We recognize the rigor, scale, and importance of the PALISADE trial, which will inform ongoing research in food allergy and has the potential to change practice for peanut allergy,” said Dr. A. Wesley Burks, a member of Aimmune’s Scientific Advisory Board and senior author of the NEJM paper. “Patients with peanut allergy must remain vigilant throughout their lives to avoid accidental exposure, and the unpredictable severity of reactions following accidental exposure can cause tangible harm to children and their families. By reducing the frequency and severity of allergic reactions to peanut, AR101 can provide reassurance to these patients and their families and have a meaningful positive impact on their daily lives.”

Aimmune’s current team consists of eight senior executives, including its primary founder, board member, and Chief Executive Officer, Stephen G. Dilly.

Previously, Stephen G. Dilly served as President and Chief Executive Officer of APT Pharma in California from 2006 to 2011. APT initially focused on developing therapeutic solutions for patients with severe pulmonary diseases. The company raised a total of $54 million across two rounds of financing.

The company ceased operations in 2011 during Stephen G. Dilly’s tenure. That same year, Stephen G. Dilly founded the current Aimmune in San Mateo, shifting focus to developing solutions for potentially life-threatening food allergies.

At that time, Stephen G. Dilly had a companion, his co-founder, Dr. Bryan Walser, who had worked for six years in the healthcare division of the Boston Consulting Group. However, Dr. Bryan Walser left the company after Aimmune’s IPO on NASDAQ in August 2015.

It is often said that five years is a critical make-or-break threshold for startups, yet Aimmune went from its founding in 2011 to ringing the opening bell on the NASDAQ in 2015, accomplishing this in just four short years.

Longitude Capital was an early key supporter of Aimmune, not only exclusively subscribing to Aimmune’s $17 million Series A financing round but also participating in the company’s pivotal Series B round. The total amount raised in Aimmune’s Series B financing, completed in March 2015, was $80 million. In August of the same year, Aimmune announced its initial public offering (IPO) on the NASDAQ stock market. Prior to the IPO, Aimmune had undergone only two brief rounds of financing.

In 2015, Aimmune achieved two additional milestones: AR101 successfully completed Phase II clinical trials and received FDA Breakthrough Therapy Designation. The potential of AR101 helped Aimmune raise $145 million from Nestlé Health Science during its 2015 initial public offering (IPO).

Subsequently, Aimmune completed a total of $156 million in equity financing through an at-the-market (ATM) offering in March this year.

Aimmune, founded in 2011 and headquartered in San Mateo, California, USA, is a clinical-stage biopharmaceutical company dedicated to developing solutions for life-threatening food allergies. Its lead candidate, AR101, has been granted Breakthrough Therapy Designation by the U.S. FDA. The company was listed on the NASDAQ stock exchange in August 2015 under the ticker symbol AIMT.

Nestlé Health Science, established in 2011 and headquartered in Switzerland, is a wholly-owned subsidiary of Nestlé. It is dedicated to developing science-based nutritional solutions to provide patients with better personalized medical care.