Alimera Sciences stock rallies 75% on ANI Pharmaceuticals deal

on Jun 24, 2024
  • ANI Pharmaceuticals is buying Alimera Sciences for $381 million.
  • The deal values ALIM shares at a whopping 75% premium.
  • Alimera Sciences stock is now up close to 100% versus its YTD low.

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Alimera Sciences Inc (NASDAQ: ALIM) rallied a whopping 75% in premarket today after ANI Pharmaceuticals Inc (NASDAQ: ANIP) said it will buy the Alpharetta, Georgia based company for about $381 million. 

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ANI shares are roughly flat at writing. 

Alimera Sciences stock valued at a 75% premium

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ANI Pharmaceuticals is willing to pay $5.50 in cash for each share of Alimera Sciences. 

It has also agreed to 50 cents a share of additional payout provided that the acquiree hits certain revenue targets in 2026 and 2027. Nikhil Lalwani – the chief executive of $ANIP said in a press release on Monday:

We believe this is a transformational acquisition for ANI, and one that aligns with our strategy to expand our Rare Disease business and deliver on our purpose of serving patients, improving lives.

Alimera Sciences stock is now up close to 100% versus its year-to-date low. 

What’s in it for ANI Pharmaceuticals?

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ANI Pharmaceuticals is paying a near 75% premium for Alimera Sciences as it expects the acquisition to help boost its adjusted per-share earnings by high-single-digit to low-double-digit by 2025. 

The Nasdaq-listed firm is also convinced that $ALIM will deliver substantial growth thereafter. All in all, ANI expects the acquisition to drive significant shareholder value. Its CEO Lalwani also said today:

We believe ANI’s proven commercial execution capabilities can further unlock ILUVIEN and YUTIQ, two growing and durable assets that would add approximately $105 million in pro forma 2024 revenues to our Company.

Alimera Sciences stock does not, however, pay a dividend at writing. 

Alimera Sciences reported a solid Q1

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Alimera and ANI Pharmaceuticals have identified about $10 million of cost synergies and expect the transaction to deliver up to a $38 million lift to adjusted core profit in 2025. 

The $1.23 billion firm based out of Baudette, Minnesota plans on using available cash and debt financing to fund the Alimera Sciences takeover. The deal “recognises the value we have created and creates compelling value for our shareholders”, as per Rick Eiswirth – the CEO of $ALIM. 

In May, Alimera Sciences reported a whopping 70% year-on-year increase in net revenue to $23 million on the back of a 23% growth in the global end user demand. 

The biopharmaceuticals sales company remained in $6.3 million of loss but reiterated its improved guidance for full-year net revenue and adjusted EBITDA last month. $ALIM ended its recent quarter with some $14.3 million in cash and equivalents. 

Note that Alimera Sciences stock saw a significant 22% growth in short interest in the second half of May.

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