Nestle wishes to acquire Aimmune Therapeutics for £1.95 billion

Nestle wishes to acquire Aimmune Therapeutics for £1.95 billion
Written by:
Wajeeh Khan
31st August, 11:39
Updated: 31st August, 11:40
  • Nestle wishes to acquire Aimmune Therapeutics for £1.95 billion.
  • The Vevey-based company already has a 25.6% stake in Aimmune.
  • Nestle forecasts £750 million of sales potential from Aimmune’s Palforzia.

Nestle (SWX: NESN) on Monday expressed plans of buying Aimmune Therapeutics for £1.95 billion. The Brisbane-based biopharmaceutical company is largely known for its peanut allergy treatment. The acquisition will bring the treatment under Nestle’s umbrella and will contribute further to its commitment towards expanding its footprint in the global healthcare sector.  

Nestle is currently trading flat on average on Monday. On a year to date basis, shares of the company are about 3% up in the stock market. Confused about choosing a reliable stockbroker to trade online? Here’s a simple comparison of a top few to help you out.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Nestle already has a 25.6% stake in Aimmune Therapeutics

Nestle launched its Nestle Health Science (NHS) business at the start of the last decade in 2011. The food and drink processing conglomerate has been collaborating with Aimmune since 2016. It already has a 25.6% stake in the biopharmaceutical firm and plans on investing another £1.50 billion to complete the acquisition.  

In June, Nestle had shown interested in partially selling its North American water business including Pure Life.

In an interview with Reuters, NHS head Greg Behar said:

“Aimmune has £196 million in cash and £100 million in debt. With our prior investment of £355 million in Aimmune, we’ll be making a cash payment of just under £1.50 billion.”

According to Nestle’s forecast, food allergies currently affect as many as 240 million people worldwide. Peanut allergy, as per NHS, is the commonest form of food allergy in the world. With Aimmune added to its portfolio, Behar added, Nestle will be able to offer prevention, diagnostic, and treatment of peanut allergy to its valuable consumers.

Nestle forecasts £750 million of sales potential from Aimmune’s Palforzia

NHS forecasts £750 million of sales potential from Aimmune’s Palforzia (treatment for peanut allergy) that recently received approval from the United States regulator for use in children. Behar said that the acquisition will add to Nestle’s organic growth in fiscal 2021 and its cash earnings by fiscal 2023.

In an announcement earlier this week, Nestle also revealed to have increased its stake in its Nigerian subsidiary.

At the moment, Nestle’s NHS segment is expected to conclude the current fiscal year with £2.74 billion of sales. By 2022, it is likely to increase its sales by more than 100% as compared to £1.66 billion in 2014. Behar also remarked on Monday:

“Palforzia has 12 years of exclusivity, global rollout will follow and they have the technology platform for other food allergies in development.”

Invezz uses cookies to provide you with a great user experience. By using Invezz, you accept our privacy policy.