Nestlé Health Science is making a $98 million equity investment in Aimmune Therapeutics, increasing its ownership in the California company by 19%.
This latest cash injection brings Nestlé Health Science’s total investment in Aimmune to $273 million. The first investment, comprising $145 million, dates back to November 2016, with a further $30 million following as part of Aimmune’s public offering in February of this year.
According to a press release, the two companies have also extended their original two-year strategic collaboration agreement focussed on innovative food allergy therapies by a further two years.
Aimmune retains all rights to its current and future pipeline assets, and Aimmune and Nestlé Health Science will collaborate towards successful development of such assets.
Further, Nestlé Health Science CEO Greg Behar will continue as Director of Aimmune.
Jayson Dallas, President and CEO of Aimmune, said: “Nestlé Health Science has been a tremendous ally as we lead the way into the new field of food allergy treatment.
“Their expertise in the pediatric space and their insights as a premier consumer health and medical nutrition products company have advanced our thinking and will help with critical planning as we anticipate launching AR101.
“We’re especially grateful to have Greg on our board and to be able to continue to benefit from his guidance and vision in service of our shared commitment to improving the lives of people affected by food allergies.
“Combined with our $255 million of cash, as of the end of the third quarter, this $98 million investment finances the company well beyond the anticipated approval and launch of AR101 in the United States.
“Additionally, it gives us the ability to bring AR101 to patients in Europe and to develop our pipeline of treatments for other food allergies.”
Mr Behar added: “The imminent US regulatory filing for AR101 and the anticipated launch to follow in the coming year will be great news for people with peanut allergy, who need robust, reliable protection from accidental-exposure reactions.”