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

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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.

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."

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%).


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