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Alimera Sciences (ALIM) Stock Surges Following Takeover Bid

Alimera Sciences, Inc. (NASDAQ: ALIM) shares have increased significantly on US stock charts in response to a takeover bid. With a 75.87% increase since the last market check, ALIM stock is currently trading at $5.54 per share.

Definitive Merger Agreement

The official merger agreement between ANI Pharmaceuticals and Alimera (ALIM) was announced today. According to the terms of the deal, ANI would purchase all of Alimera’s existing shares for $5.50 per share, which represents a premium of 82% over the 30-day volume-weighted average price of $3.03 for the firm and a premium of 75% over the closing share price of $3.15 on June 21, 2024.

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Moreover, ANI would assume Alimera’s $72.5 million debt. Shareholders may potentially get an additional $0.50 per share, provided that certain net revenue targets are met in 2026 and 2027. The deal values Alimera at about $381 million in cash up front and is anticipated to be completed by the end of 2024’s third quarter.

Strategic Consequences And Prospects

Alimera Sciences sells two primary products: YUTIQ, which is available in the US for chronic non-infectious uveitis affecting the posterior segment (NIU-PS) and diabetic macular edema (DME), and ILUVIEN, which is used for these conditions in the US, Europe, and the Middle East.

This merger is not subject to financing requirements since ANI has committed $280 million in funding from J.P. Morgan and Blackstone Credit & Insurance and plans to finance the deal using a combination of debt and cash on hand. The purchase fits nicely with ANI’s plan to grow its business in rare diseases and improve its core values of “Serving Patients, Improving Lives.”

ANI thinks Alimera would greatly enhance its speciality business and make use of its current infrastructure for rare diseases. It is anticipated that ANI’s robust commercial execution skills would enable it to capitalize on additional opportunities in ILUVIEN and YUTIQ, adding around $105 million in pro forma revenues by 2024.

With a high single-digit to low double-digit accretion in adjusted Non-GAAP EPS in 2025 and even larger accretion beyond that, the deal is expected to generate significant shareholder value. This arrangement provides strong advantages for Alimera’s shareholders while showcasing the value the company has produced.