Aimmune (AIMT) has been on my 2019 watch list, but the stock's premium price prevented me from committing to a buy. Now, the recent sell-off has AIMT near the top of my shopping list. The company is in the process of launching their first FDA-approved product, Palforzia, for the mitigation of allergic reactions for peanut-allergic patients. I believe AIMT is worthy of a pilot position at these prices.
I will discuss my view on Palforzia and how Aimmune is planning to transition into a commercial company. In addition, I discuss why I am looking to start a position during this volatile market.
My Thoughts On Palforzia
I have been keeping an eye on AIMT since Palforzia's approval a couple of months ago. I believe allergists, patients, and caretakers have been waiting for a solution to allergies rather than avoidance and rescue devices. Although the peanut and food allergy community has been using food options for their oral immunotherapy, I believe the community is looking for a systematic option that is safe and effective. Palforzia is this option and has proven that it can pass through the FDA's arduous regulatory process.
Palforzia's clinical trials revealed impressive results that demonstrate the oral therapy's ability to drastically improve a patient's tolerance to peanut protein. In the company registration studies, patients could only tolerate only a median of 10 mg at the time of screening. After 12 months of being on Palforzia, that median tolerance surged a 100-fold to 1,000 mg. That number only improved beyond 24 months.
These are the type of results that everyone is looking for… the patient's tolerance improves the longer they remain on Palforzia. This can provide patients and caregivers hope that their life is not going to be consumed by drastic measures of avoidance and accidental exposure turning into a
