Aimmune Therapeutics Secures $145 Million Investment from Nestlé Health Science to Advance Biotech Allergy Drug AR101
Recently, Nestle Health Science, a subsidiary of the Swiss food giant Nestle, invested $145 million in Aimmune Therapeutics, a U.S.-based company specializing in food allergy research. This move further accelerates Nestle’s expansion into the biotechnology sector, with a particular focus on its prioritized food allergy initiatives. The two companies will collaborate closely to jointly develop specialized products for consumers with food allergies and explore commercialization opportunities.
It is understood that this financing will be completed through the issuance of new shares. Nestlé has acquired 7.5 million newly issued common shares at a price of $19.20 per share, representing a 15% stake. Following the financing, Aimmune will retain all related products and assets developed under the CODIT protocol, as well as the marketing rights for these products, including AR101.
Aimmune’s core product is the Characterized Oral Desensitization Immunotherapy (CODIT) regimen, a biotechnology-based approach to treating life-threatening food allergies. AR101, the first oral biologic utilizing this CODIT regimen for peanut allergy in patients aged 4–17 years, has achieved breakthrough results. In March, AR101 demonstrated favorable outcomes in an open-label study, bolstering confidence in the success of its Phase 3 trial. The drug is currently in Phase 3 clinical trials, enrolling participants aged 4–55 years.
AR101 was granted the FDA’s coveted Breakthrough Therapy designation last year. In January of that same year, it secured $80 million in Series B financing, and its potential helped Aimmune raise $160 million in preparation for its IPO this August.
“We are thrilled that Nestlé Health Science, the global leader in food allergy management, has joined us in our shared commitment to reducing the risk and burden of food allergies. This significant investment will provide us with a strong cash flow of over $300 million to enhance the AR101 product, which will impact millions of people worldwide,” said Stephen Dilly, CEO of Aimmune.
Following the investment, Greg Behar, CEO of Nestlé Health Science, will also join Aimmune’s Board of Directors. Commenting on the investment, he stated, “Food allergies have a profound impact on individuals and impose a significant economic burden. We are globally seeking and investing in approaches that transform the management of food allergies—from diagnostics (Dx) to nutritional solutions (Nx) and now biologics (Rx). Aimmune’s proprietary CODIT approach holds great promise to change patients’ lives and treatment paradigms.”
Analysts believe that investing in Aimmune Therapeutics is significant for Nestlé’s position as the world’s largest packaged food company. Jon Cox, an analyst at Kepler Cheuvreux, stated that Nestlé is deeply engaged in the food allergy industry, with Nestlé Health Science focusing on three key areas: aging, pediatrics (gastrointestinal function and developmental delays), and skin allergies.
Since acquiring Novartis’ entire nutrition business for $2.5 billion in 2007, Nestlé has continuously expanded its footprint in the healthcare sector through mergers and acquisitions. In 2011, it formally established its subsidiary, Nestlé Health Science, and that same year acquired Prometheus Laboratories in San Diego as part of its entry into gastrointestinal diagnostics.
In January this year, Nestlé and Seres Therapeutics entered into a collaboration agreement, investing $120 million in the research and development of Ecobiotics, a novel biopharmaceutical project aimed at restoring the balance of the digestive system’s microbiota. In March, it strongly acquired Proactiv, a globally renowned acne-treatment brand, for more than $2 billion. Then, in April, it led a $16.5 million investment round in another microbiome biotechnology company, Enterome.
Nestlé has also partnered with the digital health company Medidata to conduct clinical trials, using fitness trackers to assess the impact of two variables—nutritional supplements and exercise—on elderly individuals suffering from joint discomfort. Its most recent investment occurred on September 1 this year, when Nestlé acquired the UK-based medical device company Phagenesis, which specializes in innovative therapies for dysphagia. Its core product, Phagenyx, uses electrical signals to stimulate the brain, thereby restoring the neural control of swallowing function.