Nestle acquires AIMMUNE'S Palforzia for $2.6 bn

THD NewsDesk, ZURICH, SWITZERLAND: Swiss food giant Nestlé acquired Aimmune Therapeutics Inc. closing the deal at $2.6 billion. Nestlé bought the California-based biopharmaceutical company through its health science division (NHS). Aimmune has been developing treatments for food allergies since its inception in 2011 and Nestlé already had an ownership stake of 25.6% in it.

NHS was founded with the view of bridging the gap between food and pharma and to diversify its array of health & wellness products since 2016, it secured Aimmune’s Palforzia. 

Palforzia is oral immunotherapy proven to mitigate the severity of allergies caused by peanuts, including anaphylaxis (when taken with a peanut-avoidant diet). It is the only FDA-approved treatment for allergic reactions induced by the consumption of peanuts among children of 4-17 years. 

NHS keen on expanding its business in the childhood nutrition department has already bought Before Brands’ SpoonfulOne, a food allergy prevention product. With Palforzia added to its portfolio of health products 

“NHS will have prevention diagnostic and medical treatment options available since there are 240 million people who suffer from food allergies, peanut allergy being the most common”, claimed NHS head Greg Behar. 

“Food allergies are not only disruptive to everyday life, but they can also be life-threatening,” he added. 

Vontobel analyst Bertschy remarked that the deal was “another milestone” for NHS after it bought the Canadian supplement-maker Atrium Innovations, acquiring its products ‘Garden of Life’ and ‘Pure Encapsulations.’

Jayson Dallas, MD, President and Chief Executive Officer of Aimmune expressed his pleasure at the merger by saying, “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 merger agreement with Nestlé has led to a whopping 170% leap in the shares of Aimmune.