Nestle Raising Stake in Aimmune Therapeutics to 19% -- Update
November 12 2018 - 10:20AM
Dow Jones News
By Colin Kellaher
Aimmune Therapeutics Inc. (AIMT) on Monday said a unit of Swiss
food giant Nestle SA (NESN.EB) will invest another $98 million in
the company, raising its stake to about 19%, as the companies
extended their collaboration on food-allergy therapies.
Aimmune, a Brisbane, Calif., biopharmaceutical company
developing treatments for food allergies, said Nestle will buy 3.24
million newly issued shares at $30.27 apiece, roughly in line with
Friday's closing price of $30.29, bringing Nestle's total
investment to $273 million.
Aimmune said it inked a two-year extension of its original
two-year deal with Nestle, adding that the agreement doesn't
contain any partnership, collaboration or negotiation restrictions.
The companies launched their collaboration in November 2016, with
Nestle investing $145 million in Aimmune.
The U.S. Food and Drug Administration in 2015 granted Aimmune
breakthrough-therapy designation for AR101, an oral immunotherapy
for the desensitization of peanut-allergic children ages four to
17. The company in February said AR101 met its primary endpoint in
a Phase 3 study, and that it planned to file for FDA approval of
the drug by the end of the year.
Aimmune on Monday said the new Nestle investment, combined with
the $255 million of cash the company had on hand at the end of the
third quarter, finances it well beyond the anticipated approval and
launch of AR101 in the U.S.
Shares of Aimmune rose 2% to $30.87 in early trading Monday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
November 12, 2018 10:05 ET (15:05 GMT)
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