US hearing loss treatment specialist Decibel Therapeutics (Nasdaq: DBTX) saw its share rocket 77% to $4.95 pre-market on Wednesday, on the news that it has agreed to be acquired by US biotech major Regeneron Pharmaceuticals (Nasdaq: REGN).
Regeneron is offering a price of $4.00 per share of Decibel common stock payable in cash at closing, with an additional non-tradeable contingent value right (CVR) to receive 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 puts Decibel at a total equity value of around $109 million based on the amount payable at closing, and a total equity value of up to about $213 million if the CVR milestones are achieved. The transaction is expected to close in the third quarter of 2023.
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