DBTX - Baird downgrades Decibel to neutral to reflect Regeneron takeover

2023-08-10 13:25:23 ET

Baird has lowered its rating on Decibel Therapeutics ( NASDAQ: DBTX ) to neutral following news that Regeneron ( REGN ) plans to buy the biotech for around $109M in cash, plus contingency value rights, or CVRs.

The investment bank said it believes the deal is likely to close, so it is reducing its rating to neutral and price target to $5.25 per share to reflect the upfront consideration plus estimated discounted value of the CVRs. Baird added that it expects the deal to close on schedule in Q3.

On Wednesday, Regeneron said it plans to buy Decibel for $4 in cash, plus up to $3.50 in cash if certain milestones are met for Decibel's lead drug candidate, DB-OTO. The total potential equity value of the deal, including CVR payments, is $213M.

More on Decibel:

Regeneron to acquire gene therapy developer Decibel for $4 per share

Decibel Therapeutics: Gene Therapies For Hearing Loss

Regeneron, Decibel's hearing loss gene therapy trial application gets approval in Spain

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