Shares of Decibel Therapeutics, Inc. (DBTX) are up 78% on Wednesday after Regeneron Pharmaceuticals agreed to acquire Decibel at $4.00 per share, with an additional non-tradeable contingent value right (CVR) of $3.50 per share in cash if Decibel's DB-OTO achieves certain clinical development and regulatory milestones within specified time periods.
DBTX is trading on the Nasdaq at $4.99, up 78.85% or $2.20 per share. It has traded between $1.61 and $5.68 in the past 52-week period.
The proposed acquisition values Decibel at a total equity value of approximately $109 million and approximately $213 million if the CVR milestones are achieved.
DB-OTO, which is currently being tested in the global Phase 1/2 CHORD clinical trial is an investigational cell-selective adeno-associated virus (AAV) gene therapy that aims to restore hearing in individuals with otoferlin-related hearing loss.
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