- Regeneron Pharmaceuticals has agreed to purchase Decibel Therapeutics for up to $213 million.
- Decibel shareholders will receive $4 per share upon closing, with an option to $3.50 per share later.
- Decibel''s top drug candidate treats certain hearing loss in children.
Decibel Therapeutics (DBTX) shares climbed soared more than 75% in early trading on Wednesday after Regeneron Pharmaceuticals (REGN) agreed to buy the biotech company for up to $213 million to expand its gene therapy pipeline . Shares of Regeneron Pharmaceuticals also rose 1%.
Regeneron said investors in Decibel will receive $4 per share upon closing of the transaction, with the potential for an additional $3.50 per share if certain clinical development and regulatory milestones are reached for its lead drug candidate, DB- OTO, a gene therapy that treats hearing. loss in children. At most, the deal would represent a 169% premium to Decibel's closing price yesterday.
The two companies were already working together after signing a collaboration agreement in 2017, extended in 2021. They are developing three gene therapy programs targeting different forms of monogenic congenital deafness.
Laurence Reid, CEO of Decibel, explained the Board of Directors believed that with Regeneron's “expertise and resources”, Decibel's pipeline could be optimally developed, and the merger was the best way to maximize shareholder value and ultimately benefit patients.
Regeneron has indicated that ;it expects the transaction to close during the current quarter.
Decibel Therapeutics actions have reached an 11 month high after the news.
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