Saumya Joseph of Reuters reports Aimmune Therapeutics Inc said on Wednesday the health science arm of Nestle SA will invest an additional $200 million, days after the drugmaker won U.S. approval for its peanut allergy therapy, touted as a potential blockbuster.
Aimmune shares rose 5.7% in early morning trading, after falling 11% on Tuesday. Its therapy, Palforzia, was approved on Friday after markets close.
Nestle’s investment is an incremental positive for Aimmune’s shares, which have seen some weakness due to investor worries over financing, Piper Sandler analyst Christopher Raymond wrote in a note.
“With this additional investment, we think the prospect of an outright take out by Nestle (or anyone else for that matter) has to be factored in more than before,” Raymond said.
Nestle has been trying to become a “nutrition, health and wellness” company, with its Nestle Health Science unit playing a pivotal role, as packaged food sales slow amid changing tastes.
The unit invested $145 million in Aimmune in 2016, followed by $30 million as part of the drugmaker’s public offering in February 2018, and another $98 million in November 2018.
Aimmune would use the latest Nestle investment to fund the launch of Palforzia, which is the first approved therapy for reducing and potentially eliminating allergic reactions to peanuts in children.