Home World Nestle to buy Aimmune Therapeutics, an allergy treatment maker at $2.6 billion

Nestle to buy Aimmune Therapeutics, an allergy treatment maker at $2.6 billion

Nestle is a Swiss multinational food processing conglomerate headquartered in Switzerland. KitKat chocolates and Nescafe instant coffee are some of Nestle’s best-known products.

To open up an area of new business between food and pharma, Nestle Health Science (NHS) was set up in 2011.

On Monday, Nestle revealed that it was offering $34.50 per share for the remaining 74.4% in Aimmune Therapeutics. It is a California based biopharmaceutical company.

Nestle has been working with Aimmune Therapeutics since 2016. It has a stake of around 25.6%, at $2.6 billion in the latter.

NHS head Greg Behar said this is an interview, “Aimmune has $261 million in cash and $134 million in debt. With our prior investment of $473 million in Aimmune, we’ll be making a cash payment of just under $2 billion”.

The deal is a premium of 174% to Aimmune’s closing share price of $12.6, as on August 28, 2020.

Up to 240 million people around the globe suffer from food allergies, with peanut allergy being the most common, Nestle said.

In January, the US Food and Drug Administration (FDA) approved Aimmune Therapeutics for Palforzia in children and teens.

This acquisition will probably lead Nestle to organic growth in 2021 and cash earnings by 2022 or 2023.

Vaishak M
Vaishak M, -> an avid Automobile enthusiast -> an amateur Photographer Signature: Behind the Wheel and Behind the Bar, all day.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

The Croods 2 Trailer Reveal 2021 Release Date for the Sequel

0
The Croods 2: A New Age has finally released its first trailer. This one gives fans a first look at the franchise's new characters....

MISSION IMPOSSIBLE 7 vs TOP GUN 2!