Nestlé bolsters biopharmaceutical investments in diabetes and food allergy solutions

06 Feb 2020 --- Nestlé Health Science (NHSc) is ramping up its investments, with a new strategic partnership with biotechnology company Valbiotis for the development and global commercialization of Totum-63. The patented combination of five plant extracts specifically designed to reduce the risk of developing Type 2 diabetes in prediabetics. Moreover, NHSc is poised to make an additional equity investment of US$200 million in food allergy solutions specialist Aimmune following FDA approval for its peanut therapy earlier this week. This brings Nestlé’s total investment in the biopharmaceutical company to US$473 million.

Speaking on Nestlé’s involvement in the Valbiotis collaboration, Jacquelyn Campo Senior Director of Communications at Nestlé, tells NutritionInsight, “This approach of using a nutritional solution to help prevent health disorders is aligned with our business strategy and fits into our Metabolic Health portfolio where we offer products around the world for people facing metabolic challenges, including those at risk for Type 2 diabetes.”

Under the terms of the agreement, Valbiotis grants NHSc exclusive and global commercial rights to use Totum-63 in the prediabetes and Type 2 diabetes market. The agreement defines a number of priority markets for global commercialization. In exchange for these rights, NHSc commits to an upfront payment of CHF 5 million (US$5.1 million), development and sales milestone payments up to a maximum of CHF 66 million (US$67.8 million), and tiered royalties on net sales.

Valbiotis grants NHSc exclusive and global commercial rights to use Totum-63 in the prediabetes and Type 2 diabetes market.The partnership will support Valbiotis’ work in a number of ways, including funding the latest clinical development phase until health claims are obtained by the appropriate authorities in the US and Europe. The financial terms of this agreement notably extends Valbiotis’ cash runway.

“NHSc is an ideal strategic partner for Valbiotis. Its global reach, strategic intent to develop science-based nutritional health solutions and focus on fighting metabolic disorders like diabetes will be instrumental to Totum-63’s worldwide commercialization success. This transformational deal arrives just five years after the creation of Valbiotis,” says Sébastien Peltier, CEO of Valbiotis.

The agreement also includes Totum-63 supply to NHSc, representing an additional source of revenue for Valbiotis. As part of the agreement, a joint steering committee comprised of representatives of both companies will oversee clinical development, regulatory matters, supply and commercialization. The commercialization of Totum-63 may take place before obtaining health claims, notes the partnership.

Investment in Aimmune Therapeutics
NHSc has also announced an additional equity investment in Aimmune Therapeutics of US$200 million, bringing Nestlé’s total investment in Aimmune to date to US$473 million. Aimmune is a biopharmaceutical company developing and commercializing treatments for potentially life-threatening food allergies.The investment includes the purchase of 1,000,000 shares of Aimmune common stock and 525,634 shares of convertible preferred stock.

“Our collaboration with Aimmune aligns with our mission to provide innovative nutritional health solutions that are supported by science and research,” says Greg Behar, CEO of NHSc. “We are impressed with the progress Aimmune has made as it prepares to launch Palforzia, the first drug approved by the Food and Drug Administration (FDA) for any form of food allergy.”

Palforzia is the first drug approved by the Food and Drug Administration (FDA) for any form of food allergy.Palforzia is an oral immunotherapy indicated for the mitigation of allergic reactions, including anaphylaxis, that may occur with accidental exposure to peanuts. Initial dose escalation may be administered to patients aged four through 17 years, notes Aimmune. Up-dosing and maintenance may be continued in patients four years of age and older.

“As part of our ongoing commitment to the advancement of science-based nutritional health solutions, our further investment in Aimmune is intended to help assure Palforzia’s longer-term commercial success and allow Aimmune to continue making significant development advances in the field of food allergy treatments,” says Behar.

“In addition, this capital will help fund the continued advancement of our pipeline, including conducting clinical trials of AIMab7195 which we recently in-licensed from Xencor,” he adds.

After the completion of the transaction, NHSc’s total investments in Aimmune will correspond to ownership of almost 20 percent of Aimmune’s outstanding common stock and voting power, and 25.6 percent overall stake in the company’s fully-diluted capitalization. The companies expect to close the equity investment on February 7, subject to satisfaction of usual and customary closing conditions.

Also in the space of early childhood food allergy prevention, NHSc invested in Before Brands last September. Before Brands is the inventor of the SpoonfulOne line, an advanced childhood nutritional product able to reduce food allergy development risk with 16 key allergens. The move marked a first for Nestlé Health Science, which has products for infants with allergies – Althéra, Alfaré and Alfamino – but had previously not engaged with allergy prevention. 

By Benjamin Ferrer