Aimmune’s FDA approved Palforzia therapy is expected to expand Nestlé Health Science’s portfolio to reduce the severity of allergic reactions to peanuts in children


Nestlé's corporate headquarters in Vevey, Switzerland. (Credit: Nestlé/Wikipedia.)

Nestlé Health Science (NHSc), a Nestlé business unit focused on nutritional science, has agreed to acquire biopharmaceutical firm Aimmune Therapeutics for a total enterprise value of around $2.6bn.

As per the merger agreement, Nestle will launch a cash tender offer for the purchase of all Aimmune’s outstanding shares not already owned by NHSc for a price of $34.50 per share

Aimmune is focused on the development of treatments for food allergies. The company’s approved Palforzia therapy is expected to expand NHSc’s portfolio with treatment to reduce the frequency and severity of allergic reactions to peanuts in children, aged between 4 and 17 years.

Aimmune president and CEO Jayson Dallas 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 a level of support for Palforzia and our pipeline that will further enhance their potential for patients around the world living with food allergies.”

The acquisition would expand NHSc’s food allergy portfolio

NHSc said that the transaction would extend its food allergy portfolio, and builds a spectrum of solutions for children living with food allergies.

Peanut allergy is common among people with food allergies, which would disrupt everyday life, and may become life threatening

Palforzia would provide a preferred solution for peanut-allergic patients instead of avoiding it, said the company.

Prior to the current transaction, NHSc has invested a total of $473m in Aimmune, an approximate 25.6% equity ownership stake, with around 19.6% in voting common stock and the rest in non-voting preferred stock.

The company has initially invested $145m in November 2016, followed by additional $30m investment in February 2018, $98m in November 2018 and $200m in January 2020.

Nestlé intends to finance the acquisition with available cash. Subject to the satisfaction or waiver of customary closing conditions, the transaction is expected to be completed in the fourth quarter of 2020.

Nestlé Health Science CEO Greg Behar said: “This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment. 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.”