Aimmune Therapeutics Shares Soar on Nestlé Health Science’s $2.6 Billion Buyout

September 2, 2020

Source: Streetwise Reports   08/31/2020

Aimmune Therapeutics shares traded 170% higher after the company reported it entered into a definitive agreement to be acquired by Nestlé for $34.50 per share in cash.

Peanuts

Biopharmaceutical company Aimmune Therapeutics Inc. (AIMT:NASDAQ), which is engaged in developing medicines for serious life-threatening food allergies, today announced that “it has entered into a definitive agreement for Sociétés des Produits Nestlé S.A. to acquire Aimmune for $34.50 per share in an all-cash transaction, implying a fully diluted equity value of $2.6 billion.” The firm indicated that Sociétés des Produits Nestlé is a part of Nestlé Health Science (NHSc) and a wholly owned subsidiary of Nestlé S.A. (NSRGY:OTC-Pink; NESN:SW).

Aimmune Therapeutics advised that the transaction is expected to close in Q4/20 and that the agreement has already been unanimously approved by all of its independent Board of Directors members. The company noted that Nestlé Health Sciences’ CEO Greg Behar, who is also an Aimmune director, abstained from voting due to his position with Nestlé Health. The firm noted that the transaction remains subject to the satisfaction of all conditions to the completion of the tender offer and until finalized Aimmune will continue to operate separately and independently.

Aimmune Therapeutics’ President and CEO Jayson Dallas, M.D., commented, “The agreement with Nestlé recognizes the value created by years of commitment and dedication to our mission by the team at Aimmune. Delivering PALFORZIA, the world’s first treatment for food allergy, is a game-changing proposition in the biopharmaceutical industry and is transformative for the lives of millions of people living with potentially life-threatening peanut allergy…This acquisition provides strong value for our shareholders and ensures a level of support for PALFORZIA and our pipeline that will further enhance their potential for patients around the world living with food allergies. Aimmune appreciates the continued strong collaboration with Nestlé Health Science dating back to 2016 through their support as a shareholder and board member, as well as through their consumer/nutrition strength and experience. Their extensive capabilities and global reach, as well as their alignment with our vision of pioneering treatments and solutions for food allergies, are a strong fit for our company.”


Free Reports:

Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter





Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.





Nestlé Health Science’s CEO Greg Behar remarked, “This transaction brings together Nestlé’s nutritional science leadership with one of the most innovative companies in food allergy treatment…Together, we will be able to create a world leader in food allergy prevention and treatment and offer a wide range of solutions that can transform the lives of people around the world living with food allergies.”

The company explained that “under the terms of the merger agreement, Nestlé S.A.’s wholly-owned subsidiary, Sociétés des Produits Nestlé S.A. (SPN), will commence a cash tender offer to acquire all outstanding shares of Aimmune common stock that are not already owned by NHSc for $34.50 per share in cash, and Aimmune agreed to file a recommendation statement containing the unanimous recommendation of the independent members of the Aimmune board that Aimmune stockholders tender their shares to SPN.”

The closing of the tender offer is subject to ordinary closing conditions and regulatory approvals in both the U.S. and Germany and requires the tender of a majority of outstanding Aimmune shares on a fully diluted basis.

Aimmune pointed out that its leading therapeutic medicine, PALFORZIA®, is an oral immunotherapy indicated for mitigation of allergic reactions including anaphylaxis that may occur with accidental exposure to peanuts and is the world’s first approved treatment for peanut allergy. The firm stated that PALFORZIA is approved for confirmed peanut allergy diagnosed patients and that initial dose escalation may be administered to patients 4-17 years old.

Aimmune Therapeutics Inc. is a biopharmaceutical company headquartered in Brisbane, Calif. The company’s stated that its “Characterized Oral Desensitization ImmunoTherapy (CODIT™) approach is intended to provide meaningful levels of protection against allergic reactions resulting from accidental exposure to food allergens by desensitizing patients with defined, precise amounts of key allergens.”

Aimmune Therapeutics started off the day with a market capitalization of around $824.7 million with approximately 65.45 million shares outstanding and a short interest of about 28.1%. AIMT shares opened more that 170% higher today at $34.21 (+$21.61, +171.51%) over yesterday’s $12.60 closing price. The stock has traded today between $34.15 and $34.28 per share and is currently trading at $34.18 (+$21.58, +171.27%).

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.