The Swiss-based food manufacturing company, Nestle, is set to significantly raise its stake in drug firm, Aimmune Therapeutics, as it begins to submit a marketing application for its peanut allergy drug by the end of 2018, Reuters reports.
In a deal expected to be worth $98mn, the agreement will see Nestle’s stake rise to 19% from 14.5% as of the end of February, with its total investment in the company reaching $273mn.
It has also been announced that the companies have increased their two-year strategic pact to create therapies for food allergies by an additional two years.
Wedbush Securities analyst, Liana Moussatos, commented: “Some investors were worried that Nestle might sell their original equity investment in Aimmune. However, to us, this suggests Nestle views investment in Aimmune as long-term.”
According to Chief Executive Officer, Jayson Dallas, the launch of Aimmune’s oral drug, AR101, is said to be “well beyond” the expected approval and unveiling of the drug in the US.
It is anticipated the drug will be one of the first to be made available to patients in need for treatment options.