By Dean Seal
Regeneron Pharmaceuticals agreed to acquire Decibel Therapeutics for $4 a share, marking a 43% premium from yesterday’s closing price.
The Tarrytown, N.Y.-based company said the deal gives Decibel a total equity value of about $109 million based on the amount payable at closing, though that valuation goes up to $213 million if certain clinical development and regulatory milestones are achieved.
The transaction includes an additional non-tradeable contingent value right to receive up to $3.50 a share in cash for hitting those milestones on Decibel’s lead investigational candidate, DB-OTO, which is designed to provide hearing to people with otoferlin-related hearing loss and is currently in its first clinical trial.
The deal is expected to close in the third quarter.
Decibel shares were halted at $2.79 in premarket trading.
Write to Dean Seal at dean.seal@wsj.com
Read the full article here
