Summary:
Peanut allergy is the most common cause of death among food allergens, and there are no current treatment options
AIMT and DBVT offer unique and novel therapies to a patient population with an unmet clinical need
AIMT and DBVT have strong phase 2 data that will likely yield positive phase 3 data readouts in the next few weeks/months
Investment Thesis:
Aimmune Therapeutics (AIMT) and DBV Technologies (DBVT) are both developing compounds to treat accidental exposure to food allergens. Both companies have upcoming pivotal phase 3 data readouts, with AIMT’s readout expected in Q1 2018, and DBVT having two phase 3 readouts, the PEPITES trial, with readout expected in October 2017, and the REALISE trail with readout expected by year end. We believe it is prudent to own both AIMT and DBVT leading into their upcoming pivotal phase 3 data read outs and for the longer term. However, an initial investment at this point should be a relatively small initial investment as both stocks have run up considerably (about 50%) since their June 2017 lows. The peanut allergy market has no approved treatments right now, and in our view there is room for both companies. Peanut allergy is the most common cause of death among food allergies, and its prevalence continues to grow in children.
Aimmune Therapeutics (AIMT) has the potential to offer the first successful oral immunotherapy for peanut allergy. AIMT’s characterized oral desensitization immunotherapy (CODIT™) approach is focused on periodic desensitization of food allergens by precisely controlling the amount of food protein administered (the protein component of the food is what elicits the allergic response).
DBV Technologies (DBVT) is a cutaneous immunotherapy company also seeking to develop a solution for the food allergy market. The DBVT technology is a patch based immunotherapy that delivers antigen to Langerhans cells, the antigen-presenting immune cells in the skin that can induce tolerization. Advantages of using a skin patch for allergen desensitization are a lower chance of systemic side effects like anaphylaxis, and a strong and highly tolerogenic response.
Both companies are developing their technologies to address “accidental exposure” to antigen and have designed their trials in close collaboration with the FDA. AIMT and DBVT aim to reduce...