Aimmune Soars as Nestle Buys Peanut Allergy Treatment Maker

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Aimmune Soars as Nestle Buys Peanut Allergy Treatment Maker
Credit: © Reuters.

By Christiana Sciaudone

Investing.com --  Aimmune Therapeutics (NASDAQ: AIMT ) skyrocketed 171% after Nestle SA (SIX: NESN ) said it would pay $2 billion for the peanut allergy treatment maker. 

Nestle Health Science already has a 25.6% equity stake in the company, with its first investment made in 2016.   

"Aimmune has $261 million in cash and $134 million in debt. With our prior investment of $473 million in Aimmune, we'll be making a cash payment of just under $2 billion," NHS head Greg Behar told Reuters in an interview.

The U.S. Food and Drug Administration approved Aimmune's Palforzia for peanut allergies in January. It is an oral immunotherapy indicated for the mitigation of allergic reactions, including anaphylaxis, that may occur with accidental exposure to peanuts. More than 1.6 million kids and teenagers in the U.S. have peanut allergies, the company said.

Palforzia has sales potential of $1 billion, Behar told Reuters.

 

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