Nestle, a food giant, revealed on Monday that they were offering $34.50 per share (almost tripled its market value) for the remaining 74.4% in peanut allergy treatment maker, Aimmune Therapeutics, it does not own, because it adds what seems to be a lucrative treatment of your portfolio.
Buy conducting this venture, it will add a leading role in the treatment of peanut allergies in its largest health-science project to date.
Including a 26% stake that Nestlé health-science already holds in Aimmune Therapeutics, the deal has a company value of about $2.6 billion, as the Swiss company Nestle revealed. The price represents 174% of the premium premium to Aimmune’s Friday close. The amount to be paid for the shares is approximately $1.7 billion, according to Bloomberg’s calculations.
Furthermore, they said that the offer estimated the California biopharmaceutical company at $2.6 billion, including $473 million that Nestle has already invested in Aimmune Therapeutics.
In the beginning of 2020, Aimmune Therapeutics received approval from the US Food and Drug Administration (FDA) for Palforzia, which exposes patients to small doses of peanut protein over time. That was the first drug approved for food allergies when it comes to children and teenagers.
Nestle said that the procurement was expected to be added to organic growth in 2021 and cash earnings by 2022/23.
Chief Executive Officer of Nestle, Mark Schneider, cultivates Nestle’s health science as shedding slower-growing businesses in areas, such as bottled water and sweets.
Mark Schneider said that he wanted to buy more companies after the sale of Nestle’s U.S. confectionery operations and placing its U.S. ice cream business in a joint venture with the private equity company PAI Partners. Nestle’s money supply has been strengthened by the sale of dermatological business worth $10 billion.
On other hand, Nestle also focused on expanding coffee business, allocating $7.2 billion on the right to market Starbucks products, including coffee capsules for the Nespresso system.
The food giant said it expects the cash-financed agreement on Aimmune Therapeutics to close in the fourth quarter.
Shares of Nestle company rose as much as 0.8% on Monday morning.
Up to 240 million people worldwide suffer from food allergies, and peanut allergy is one of the most common. It is a type of food allergy to peanuts, but it differs from the allergy to wooden nuts, since peanuts are legumes, and they are not real nuts.
Peanut allergy is one of the most common causes of severe allergy attacks.
For some people who have a peanut allergy, even small amounts of peanuts can cause a serious reaction that can be even life-threatening (anaphylaxis). Physical symptoms of an allergic reaction may include itching, swelling, eczema, rash, sneezing, asthma attack, abdominal pain, drop in blood pressure, diarrhea, and cardiac arrest. People with a history of asthma are more likely to become seriously affected.
Peanut allergy increases in children, even if you or your child had only a mild allergic reaction to peanuts, it is of utter importance to talk to your doctor. There is still a risk of a more serious reaction in the future.
Allergy is recognized as one of the most severe food allergies due to its prevalence, persistence and potential severity of the allergic reaction.