ANI Pharmaceuticals to Acquire Alimera Sciences for $381 Million M&A Deal

Insidearbirage.com

ANI Pharmaceuticals, Inc. (ANIP) and Georgia-based biopharmaceutical company Alimera Sciences, Inc. (ALIM) on June 24, 2024, entered into a definitive agreement under which ANI will acquire Alimera for $381 million. This strategic acquisition aims to enhance ANI Pharmaceuticals’ position in the ophthalmology market, marking a noteworthy shift in its growth strategy.

Deal Structure:

As per the agreement, ANI will acquire Alimera for $5.50 per share in cash, representing a premium of 74.6% from the stock’s last close.

Along with the cash, Alimera shareholders will receive one non-tradable contingent value right (CVR) of up to $0.50 per share, with up to $0.25 per share for net revenues exceeding $140 million in 2026 (sliding scale-up to $150 million) and up to $0.25 per share for net revenues exceeding $160 million in 2027 (sliding scale up to $175 million).

Strategic Rationale

ANI Pharmaceuticals, known for its diversified portfolio of high-quality branded and generic pharmaceutical products, sees this acquisition as a strategic fit. Alimera Sciences, a leader in the development and commercialization of ophthalmic pharmaceuticals, brings to the table its flagship product, ILUVIEN®. ILUVIEN® is an intravitreal implant used to treat diabetic macular edema (DME) and non-infectious uveitis, expanding ANI’s reach into the high-growth ophthalmology market.

Arthur Przybyl, President and CEO of ANI Pharmaceuticals, expressed his enthusiasm for the acquisition: “This acquisition aligns perfectly with our growth strategy, enhancing our portfolio with a leading ophthalmic product and expanding our footprint in a new therapeutic area. We believe this will create significant value for our shareholders and provide new opportunities for our employees.”

Alimera Sciences’ Perspective

Founded in 2003, Alimera Sciences has been dedicated to the development and commercialization of innovative ophthalmic treatments. Dan Myers, CEO of Alimera Sciences, commented on the acquisition: “Joining forces with ANI Pharmaceuticals is a great opportunity for Alimera Sciences. ANI’s resources and expertise will enable us to accelerate the commercialization of ILUVIEN® and advance our pipeline of ophthalmic products. We are excited about the future prospects for our employees and customers.”

Market Impact

The acquisition is expected to close in the second half of 2024, subject to regulatory approvals and customary closing conditions. Analysts predict that this deal will significantly enhance ANI Pharmaceuticals’ market position, providing a solid foundation for growth in the ophthalmology sector.

Industry experts view this acquisition as a strategic move to capitalize on the growing demand for ophthalmic treatments, driven by an aging population and increasing prevalence of diabetes-related eye conditions. The global diabetic macular edema market alone is projected to reach $4.8 billion by 2026, according to a report by MarketsandMarkets.

Financial Outlook

The acquisition is anticipated to be accretive to ANI Pharmaceuticals’ earnings per share (EPS) in the first year following the close. The company expects to achieve significant synergies through operational efficiencies and cross-selling opportunities.

Moreover, the deal is expected to strengthen ANI Pharmaceuticals’ revenue base and enhance its R&D capabilities, providing a robust pipeline of products to drive future growth.

Deal Details and Timeline:

ANI expects this acquisition to add about $105 million in brand revenues, strengthening its Rare Disease business. Alimera’s ILUVIEN and YUTIQ will add to ANI’s ophthalmology segment.

Alimera’s current EV/EBITDA (TTM) ratio is 21.82, above the sector median of 15.48.

The deal, expected to close late in the third quarter of 2024, will help ANI expand its reach to the European and Middle Eastern markets through Alimera’s reach.

Deal Metrics:

For more details regarding this M&A transaction, please visit the Deal Metrics page here @ https://www.insidearbitrage.com/2024/06/ani-pharmaceuticals-to-acquire-alimera-sciences-for-381-million/

The Deal Metrics page for each merger or acquisition includes:

– A spread history chart of the merger from announcement through eventual completion or failure. – Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc. – News and SEC filings. – A history of deal updates. – And a whole lot more.

About InsideArbitrage:

InsideArbitrage is a leading platform for investment insights and education, offering curated reading lists, analysis, and premium tools for investors seeking to enhance their knowledge of special situations investing that includes the strategies of merger arbitrage, legal insider transactions, spinoffs, management transitions, stock buybacks and SPACs.

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Disclaimer: This press release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements can generally be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” or similar expressions. These statements are based on the current expectations and beliefs of ANI Pharmaceuticals, Inc. (ANIP) and Alimera Sciences, Inc. (ALIM) management and are subject to a number of risks, uncertainties, and assumptions that could cause actual results to differ materially from those described in the forward-looking statements.

This content does not constitute financial advice, investment advice, or any other kind of advice, and should not be relied upon as such. Readers are encouraged to conduct their own research and seek professional guidance before making any investment decisions. The completion of the transaction is subject to various conditions, including shareholder and regulatory approvals, and there can be no assurances that the transaction will be completed as described. Neither the author nor the publishing platform assumes any responsibility or liability for any errors or omissions in the content of this press release.

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