Shares of biotechnology company Decibel Therapeutics (NASDAQ:DBTX) have skyrocketed nearly 73% today after it agreed to be acquired by Regeneron Pharmaceuticals (NASDAQ:REGN), the name behind Eyelea injection, at $4 per share.
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The deal also includes an additional non-tradeable contingent value right (CVR) for about $3.50 per share to be payable on reaching certain milestones for Decibel’s lead candidate, DB-OTO. The deal, including the CVR, pegs Decibel’s equity value at nearly $213 million.
Decibel’s clinical pipeline of gene therapy candidates is aimed at ear and the transaction takes forward a nearly six-year collaboration between the two companies. Decibel and Regeneron are developing three gene therapy programs and the acquisition is expected to boost Regeneron’s genetic medicines portfolio.
The acquisition has received the approval of Decibel’s Board and is anticipated to close in the third quarter of this year.
Despite today’s price gains, Decibel shares are still down nearly 42% over the past six months. Meanwhile, Regeneron shares are trending nearly 1.4% higher today.
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