Decibel Therapeutics Stock Soars on Acquisition Deal - The Details

Regeneron Pharmaceuticals Inc REGN has agreed to acquire Decibel Therapeutics Inc DBTX at $4.00 per share with an additional contingent value right of up to $3.50 per share in cash upon achievement of certain clinical development and regulatory milestones for Decibel's lead investigational candidate, DB-OTO, within specified time periods. 

The proposed acquisition values Decibel at a total equity value of approximately $109 million and approximately $213 million if the CVR milestones are achieved.

Decibel and Regeneron established their initial collaboration in 2017, with an extension announced in 2021, and are developing three gene therapy programs targeting different forms of congenital, monogenic hearing loss. 

DB-OTO, currently in the global Phase 1/2 CHORD clinical trial, is an investigational cell-selective, adeno-associated virus (AAV) gene therapy designed to provide hearing to people with otoferlin-related hearing loss. 

Preclinical programs include AAV.103 for people with GJB2-related hearing loss and AAV.104 for people with stereocilin (STRC)-related hearing loss.

Price Action: DBTX shares are up 82.4% at $5.09 during the premarket session on the last check Wednesday.