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Aimmune Analyst Says Palforzia Launch Funding Secured With Nestle's $200M Investment

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Aimmune Analyst Says Palforzia Launch Funding Secured With Nestle's $200M Investment

Aimmune Therapeutics Inc (NASDAQ: AIMT) recently received FDA approval for its peanut allergy drug Palforzia. 

The Aimmune Analyst

Baird analyst Brian Skorney maintained an Outperform rating on Aimmune with a $64 price target.

The Aimmune Thesis

With NESTLE S A/S ADR (OTC: NSRGY) Health Science's $200-million investment in Aimmune, the company is now adequately funded for the Palforzia launch, settling the bull-bear launch debate, Skorney said in a Thursday note. (See his track record here.)

The Nestle investment, along with Aimmune's existing cash and KKR credit facility, places more than $450 million at Aimmune's disposal, the analyst said.

"Given this significant liquidity, we do not believe the company will need to raise additional capital in the near-term, essentially eliminating the ability for shorts to cover through a financing," he said. 

With about 30% of the float short, Skorney said he sees the potential for a squeeze as some decide to cover rather than wait to see how the first couple quarters of Palforzia sales stack up against modest consensus expectation of $51.8 million for 2020.

Aimmune has announced an in-licensing deal with Xencor Inc (NASDAQ: XNCR) for XmAb7195, an anti-IgE monoclonal antibody designed to rapidly clear from IgE circulation through three distinct mechanisms, according to Baird. 

The antibody, which has been renamed AIMab7195, will be tested in Phase 2 trials as an adjunctive therapy with some of Aimmune's select oral immunotherapy, including Palforzia.

Aimmune Price Action

The stock was down 4% at $29.07 at the time of publication Thursday.

Related Links:

Biotech Stock On The Radar: Aimmune Awaits Adcom Test

Attention Biotech Investors: Mark Your Calendar For These February PDUFA Dates

Photo courtesy of Aimmune. 

Latest Ratings for AIMT

DateFirmActionFromTo
Sep 2020Credit SuisseMaintainsNeutral
Sep 2020Cantor FitzgeraldDowngradesOverweightNeutral
Sep 2020WedbushDowngradesOutperformNeutral

View More Analyst Ratings for AIMT
View the Latest Analyst Ratings

 

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