Nestle to Buy Aimmune Therapeutics

The food giant Nestle wants to acquire the biopharmaceutical company Aimmune Therapeutics, in which it currently holds a 25.6% stake

Trader 1

The food giant Nestle wants to acquire the biopharmaceutical company Aimmune Therapeutics, in which it currently holds a 25.6% stake. The group will launch a takeover bid for the Wall Street-listed company, offering $34.50 (31.18 Swiss francs) per share and valuing the company at $2.6 billion.

 

The proposed price implies a 170% premium to Friday's closing price of $12.60. The transaction will be financed with "available cash".
The acquisition will contribute to the organic growth in 2021, and to earnings by 2022-2023.

Nestle mainly wants to acquire Palforzia, a product recently approved in the United States, which is presented as the only product to help reduce the frequency and severity of peanut allergic reactions in children.

From a chartist’s point of view, the stock price is trading within a short term upward-sloping channel since April 2020 and remains supported by its rising 50DMA currently at 108.14CHF. Prices are nearing the former resistance at 113.2CHF. A short term consolidation move cannot be ruled out. As long as 105CHF is support, the bias remains bullish. A push above 113.2CHF would call for a new up leg towards 120CHF. Alternatively, a break below the channel support at 105CHF would call for a reversal down trend with 99.8CHF as target. 

Source: GAIN Capital, TradingView


More from Equities

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.