Nestle Buys Aimmune

Nestle has made a $2.6 billion offer to buy out Aimmune Therapeutics, adding it to the Nestle Health Sciences portfolio. Aimmune is a biopharmaceutical company which has been developing a drug to address peanut allergies called Palforzia. Palforzia exposes patients to small doses of peanut protein over time in order to reduce their allergic reactions.

This $34.50 a share buyout represents a hefty 171% premium to Friday's closing price. Nestle already had a 25.6% stake in Aimmune prior to the deal, and now the food giant will acquire it all, and the commercial rights to Palforzia, which has been approved by the FDA.

Aimmune's launch of Palforzia was hindered by the ongoing pandemic, but analysts expect the drug to be a blockbuster. The forecast is for it to make over $1 billion in sales by 2025. If true, Nestle is getting this business for a bargain. Aimmune shareholders are laughing to the bank after this announcement, although it should be noted that the share price has been very volatile and even higher than this buyout price in recent months.