Allergy-Medication Firm Aimmune Gets Added $200 Million Nestlé Investment

Nestlé lifted its investment in allergy-medication producer Aimmune by $200 million to $473 million.
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Aimmune Therapeutics  (AIMT) - Get Report shares were higher after Nestlé Health Science lifted its investment in the allergy-medication producer by $200 million to $473 million.

Nestlé Health is the nutritional-science division of Swiss foods giant Nestle.  (NSRGY)

Aimmune, Brisbane, Calif., said the additional capital strengthens its financial position ahead of the launch of Palforzia, the first medicine that the Food and Drug Administration has cleared for peanut allergies in the U.S.

The company also will use the funds to advance its drug pipeline, including clinical trials of a drug aimed at food allergies. Aimmune recently in-licensed that drug from Xencor  (XNCR) - Get Report.

"Nestlé Health Science has been an important equity investor and strategic partner to Aimmune since we entered into our original collaboration in 2016," said Jayson Dallas, a physician who is Aimmune's chief executive. Both companies are seeking innovative therapies for food allergies, he said. 

In the latest investment Nestlé Health purchased 1 million common shares and 525,534 convertible preferred shares of Aimmune. 

With the deal, some of the terms of Aimmune’s agreements with Nestlé have been extended by one year to November 11, 2021.

Nestle's "investment in Aimmune is intended to help assure Palforzia’s longer-term commercial success and allow Aimmune to continue making significant development advances in the field of food-allergy treatments,” Nestlé Health CEO Greg Behar said.

At last check Aimmune shares were 4.4% higher at $30.66. They've traded on Wednesday up as much as 11%.