Aimmune Therapeutics Inc. (NASDAQ: AIMT) shares more than doubled to start out the week after reports surfaced that the company would be acquired by Nestle Health Sciences, a subsidiary of the Nestle.
The agreement was unanimously approved by all independent members of the Aimmune board of directors. The transaction is expected to close in the fourth quarter of this year.
Under the terms of the deal, Nestle will acquire Aimmune for $34.50 per share in an all-cash transaction, implying a fully-diluted equity value of $2.6 billion.
Aimmune agreed to file a recommendation statement containing the unanimous recommendation of the independent members of its board that Aimmune stockholders tender their shares to Nestle.
The prize for Nestle here is Palforzia, the world’s first treatment for food allergy. Management considers this a game-changing proposition in the biopharmaceutical industry and a transformative treatment for the lives of millions of people living with potentially life-threatening peanut allergy.
Aimmune management also noted its appreciation for the continued strong collaboration with Nestle Health Science dating back to 2016 through the firm’s support as a shareholder and board member, as well as through their consumer/nutrition strength and experience.
All this considered, Aimmune is getting a solid premium for its shares. The transaction price reflects premiums of 125% and 62%, compared to the 50-day and 200-day moving averages of $15.33 and $21.26, respectively. However, keep in mind that this stock did top out around $37 at the start of this year, before the pandemic hit.
Aimmune stock traded up about 171% to $34.20 early Monday, in a 52-week range of $10.09 to $37.00. The consensus price target is $35.18.
24/7 Wall St.It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.