Yahoo Finance Alimera (ALIM) Rises on Merger Deal With ANI Pharmaceuticals
Alimera Sciences, Inc. ALIM recently announced that it has entered into a definitive agreement with Minnesota-based biopharmaceutical company, ANI Pharmaceuticals, Inc. ANIP, wherein the latter has agreed to acquire Alimera.
Shares of Alimera shot up 75.9% on Jun 24 following the news announcement, while ANIP shares rose 7.3%.
Per the deal terms, Alimera is set to be acquired by ANIP for $5.50 per share in cash and its investors will be entitled to a contingent value right for up to $0.50 per share if certain revenue targets are achieved in 2026 and 2027. The purchase price represents a rich premium of 75% on Alimera’s closing share price of $3.15 on Jun 21. ANIP will also clear Alimera’s debt of $72.5 million.
The deal, which values Alimera at almost $381 million in upfront consideration, is expected to close late in the third quarter of 2024, subject to customary closing conditions. The board of directors of ALIM and ANIP have approved the transaction.
Shares of Alimera have rallied 28.2% so far this year against the industry’s decline of 5.9%.
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Meanwhile, shares of ANI Pharmaceuticals have increased 14% year to date against the industry’s decline of 5.8%.
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Alimera’s commercial portfolio currently comprises two marketed products, Iluvien (fluocinolone acetonide intravitreal implant 0.19mg) and Yutiq (fluocinolone acetonide intravitreal implant 0.18mg).
Iluvien is approved for treating diabetic macular edema in the United States, Europe and the Middle East and for chronic non-infectious uveitis affecting the posterior segment (NIU-PS) of the eye in Europe and the Middle East.
Yutiq is approved for the treatment of chronic NIU-PS in the United States only.
The acquisition of Alimera looks like a good strategic fit for ANIP. It is expected to strengthen the latter’s rare disease business and drive long-term growth as both Iluvien and Yutiq hold significant potential in the target market.
Also, the acquisition of Alimera is expected to deliver high single-digit to low double-digit accretion in adjusted non-GAAP EPS as well as an additional $35-$38 million in 2025 adjusted non-GAAP EBITDA for ANIP, including around $10 million in cost synergies.
Zacks Rank & Stocks to Consider
Alimera and ANI Pharmaceuticals currently carry a Zacks Rank #4 (Sell) each.
Some better-ranked stocks in the healthcare sector are Aligos Therapeutics, Inc. ALGS and RAPT Therapeutics, Inc. RAPT, each sporting a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Aligos Therapeutics’ 2024 loss per share have narrowed from 84 cents to 73 cents, while loss per share estimates for 2025 have narrowed from 82 cents to 71 cents. Year to date, shares of ALGS have declined 35.4%.
ALGS’ earnings beat estimates in three of the trailing four quarters and missed the other, the average surprise being 7.83%.
In the past 60 days, estimates for RAPT Therapeutics’ 2024 loss per share have narrowed from $3.19 to $2.93. Loss per share estimates for 2025 have narrowed from $2.40 to $2.05. Year to date, shares of RAPT have plunged 87%.
RAPT’s earnings beat estimates in two of the trailing four quarters while missing the remaining two, the average surprise being 3.19%.
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Alimera Sciences, Inc. (ALIM) : Free Stock Analysis Report
ANI Pharmaceuticals, Inc. (ANIP) : Free Stock Analysis Report
Rapt Therapeutics (RAPT) : Free Stock Analysis Report
Aligos Therapeutics, Inc. (ALGS) : Free Stock Analysis Report
