Nestlé to Swallow Up Peanut Allergy Drug Maker Aimmune in $2.6B Deal
Summary
Shares sank to a 52-week low in March and have remained slumped as the Brisbane, CA-based company struggled to build sales for its new product during the COVID-19 pandemic. According to Aimmune’s securities filings, the deal also included a “standstill agreement,” in which the larger company pledged that it would not acquire the smaller one for two years. The experimental peanut allergy immunotherapy hit the goals of clinical trials, and as it was being readied for submission to the FDA, Nestlé paid $98 million in 2018 to boost its Aimmune stake to 19 percent. Shortly after Palforzia won FDA approval earlier this year, Nestlé increased its stake in Aimmune yet again with a $200 million equity investment. By acquiring Aimmune, Nestlé can bring Palforiza into its portfolio, which already includes a nutritional product for people with allergies to milk proteins.
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