Nestle is making a $2 billion bet on the company that developed the first drug ever approved to treat peanut allergies.
The company announced this week that it is buying the remaining stake in California-based Aimmune Therapeutics. Nestle already has a 25 percent stake in the company and values Aimmune at $2.6 billion.
Aimmune’s peanut allergy treatment, Palforzia, was given the green light by the FDA in January. But the coronavirus pandemic, which led to many allergy clinics closing, has significantly slowed its rollout. Nevertheless, with 1.6 million children suffering from peanut allergies in the U.S. alone, the treatment has been pegged to eventually become a blockbuster.
Nestle indicated that the deal is aimed at expanding its Health Science division, which includes treatments for other food allergies including egg and tree-nuts.
Read the full Reuters report.
