Healthcare Business

Are Aimmune Shareholders Getting Enough in the Buyout?

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.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.