NSRGY Nestle SA (PK)

   By Colin Kellaher 
 

Aimmune Therapeutics Inc. (AIMT) on Monday said a unit of Swiss food giant Nestle SA (NESN.EB) will invest another $98 million in the company, raising its stake to about 19%, as the companies extended their collaboration on food-allergy therapies.

Aimmune, a Brisbane, Calif., biopharmaceutical company developing treatments for food allergies, said Nestle will buy 3.24 million newly issued shares at $30.27 apiece, roughly in line with Friday's closing price of $30.29, bringing Nestle's total investment to $273 million.

Aimmune said it inked a two-year extension of its original two-year deal with Nestle, adding that the agreement doesn't contain any partnership, collaboration or negotiation restrictions. The companies launched their collaboration in November 2016, with Nestle investing $145 million in Aimmune.

The U.S. Food and Drug Administration in 2015 granted Aimmune breakthrough-therapy designation for AR101, an oral immunotherapy for the desensitization of peanut-allergic children ages four to 17. The company in February said AR101 met its primary endpoint in a Phase 3 study, and that it planned to file for FDA approval of the drug by the end of the year.

Aimmune on Monday said the new Nestle investment, combined with the $255 million of cash the company had on hand at the end of the third quarter, finances it well beyond the anticipated approval and launch of AR101 in the U.S.

Shares of Aimmune rose 2% to $30.87 in early trading Monday.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

November 12, 2018 10:05 ET (15:05 GMT)

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