Decibel Therapeutics, Inc. (NASDAQ: DBTX) is orchestrating an impressive symphony on the market stage today, soaring by an astonishing 76.70% to elegantly dance at $4.93 in the latest act on this Wednesday’s financial theater. Just yesterday, the curtains fell on Decibel Therapeutics’ stock at $2.79, marking a modest 1.00% rise, a precursor to the current crescendo. This exhilarating ascent of DBTX shares is gracefully choreographed by a captivating takeover performance.
In a harmonious duet of strategic resonance, Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) and Decibel Therapeutics (DBTX) now unite under a spotlight of transformative ambition. These visionary entities, bound by a shared dedication to rediscover the symphonies of sound and equilibrium, have unveiled a definitive agreement that shall see the acquisition of Decibel by the esteemed Regeneron. A masterful arrangement composed at a harmonious price of $4.00 per share of Decibel common stock, payable in the tender embrace of cash upon the grand finale.
This musical merger unveils an ethereal note of innovation, complemented by a unique symphony of potential. An alluring twist in this serenade takes the form of a non-tradeable contingent value right (CVR), gifting shareholders the chance to dance to a tune of up to $3.50 per share in cash, should the entrancing DB-OTO, Decibel’s lead investigational candidate, achieve certain clinical and regulatory milestones within a specified cadence.
The melodic overture of this acquisition serenades Decibel with an equity value of approximately $109 million, with a crescendo that could reach a harmonious $213 million should the CVR’s crescendo be fully orchestrated.
This harmonious partnership, a tale that first graced the stage in 2017, has since evolved into a triumphant trio of gene therapy programs, each a sonnet dedicated to silencing the deafening void of monogenic hearing loss. As this symphony plays on, the stage is set for Regeneron’s overture, directed through its subsidiary, Symphony Acquisition Sub, Inc., to tenderly beckon all outstanding shares of Decibel with a dulcet offer of $4.00 per share, each note woven with the promise of cash at closure, and the CVR as a bewitching encore.
The chorus of CVR holders anticipates a melodious windfall – $2.00 in cash when the fifth participant dances to the rhythm of DB-OTO by December 31, 2024, and a harmonious $1.50 upon the debut of DB-OTO’s majestic performance in a registration-enabling trial or regulatory acceptance, whichever harmonizes first, by December 31, 2028, provided the initial milestone is graced by December 31, 2024.
