Nestlé Health Science has raised its equity stake in biopharmaceutical firm Aimmune Therapeutics to around 19% with an investment of $98m.
The deal increases Nestle Health’s total investment in Aimmune to $273m. The health science company initially invested $145m in November 2016, followed by $30m in February this year.
Nestlé Health and Aimmune have also announced a two-year extension to their existing strategic alliance for developing treatments for food allergies.
Under the terms of the extended agreement, Aimmune retains all rights to its existing and future pipeline assets, and will jointly work with Nestlé Health for the development of the products.
Aimmune’s lead candidate, AR101, is currently in the final stages of clinical testing as an oral biologic drug for the treatment of severe peanut allergies.
Aimmune Therapeutics president and CEO Jayson Dallas said: “Combined with our $255m of cash, as of the end of the third quarter, this $98m investment finances the company well beyond the anticipated approval and launch of AR101 in the US.
“Additionally, it gives us the ability to bring AR101 to patients in Europe and to develop our pipeline of treatments for other food allergies.”
Subject to customary closing conditions and regulatory approvals, the equity investment is expected to be completed by the end of this year.
Nestlé Health Science CEO Greg Behar said: “With this investment, Nestlé Health Science continues to be the largest investor in Aimmune.
“This collaboration exemplifies Nestlé Health Science’s commitment to food allergy and our excitement to continue an alliance with a leading innovator in the development of food allergy therapeutics.”