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Swiss food and drink company Nestlé has entered a deal to acquire pharmaceutical company Aimmune Therapeutics Inc. for $2 billion.
Nestlé Health Science (NHS), the company’s emergent health and wellness business, is set to gain full ownership of Aimmune, a company that develops treatments for food allergies. The deal is projected to be crucial to Nestlé’s growth in 2021 and its earnings by 2022.
The acquisition is expected to expand NHS’s product portfolio with a wide array of allergy solutions, including Aimmune’s breakthrough drug, Palforzia. This drug is the first and only FDA-approved treatment for helping reduce the frequency and severity of peanut allergies among children. NHS CEO Greg Behar said that Palforzia has a $1-billion sales potential.
Jayson Dallas, President and CEO of Aimmune said that the pharmaceutical company is grateful for its partnership with NHS. He believes that Nestlé and Aimmune will complement each other’s strengths. Nestlé’s capabilities and global reach will help Aimmune more effectively fulfill its goal of helping people with food allergies live normal lives.
Nestlé started investing in Aimmune in 2016 and has been steadily increasing its shares in the company over the last four years. Before the acquisition, Nestlé owned 25.6% of Aimmune’s stakes, which amounts to about $2.6 billion.
The acquisition, which is expected to be completed this year, will add to Nestlé’s growing list of health business ventures. The food company has also recently purchased supplement maker Atrium.