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

2023-08-09 08:06:59 ET

Regeneron Pharmaceuticals ( NASDAQ: REGN ) has agreed to acquire Decibel Therapeutics ( DBTX ), a micro-cap biotech focused on developing gene therapies for hearing disorders, for $4.00 per share in cash plus a contingent value right, the companies announced Wednesday.

Decibel ( DBTX ) stock jumped ~78% in reaction while Regeneron ( REGN ) traded flat.

The non-tradable CVR valued at $3.50 per share in cash depends on the achievement of certain milestones related to the company’s lead asset, DB-OTO, a gene therapy candidate targeted at patients with hearing loss due to mutations of the otoferlin gene.

The transaction expected to close in Q3 2023 values Boston, Massachusetts-based Decibel ( DBTX ) at about $109M excluding the considerations for contingent value rights.

Per the terms, Regeneron ( REGN ) is expected to pay the initial amount of $4.00 per share for Decibel ( DBTX ) common stock at the closing of the deal.

Regeneron ( REGN ) and Decibel ( DBTX ) have partnered over the years for gene therapy programs targeted at congenital forms of hearing loss.

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