Decibel Therapeutics (NASDAQ:DBTX) stock is soaring higher on Wednesday after signing a deal with Regeneron Pharmaceuticals (NASDAQ:REGN).
This deal has Regeneron Pharmaceuticals agreeing to acquire Decibel Therapeutics for $4 per share in cash. The deal also has an additional contingent payment of $3.50 per share for DBTX stock if certain milestones are met.
At the $4 price for DBTX stock, this offer represents a 43.3% premium over its prior closing price. When taking into account the potential extra payments, it reaches an almost 151% premium to the shares’ previous closing price. The total value of the deal is $109 million and $213 million if the milestones are met.
The milestone payment has to do with clinical and regulatory developments for DB-OTO within certain time periods. This is Decibel Therapeutics’ lead candidate to treat congenital, monogenic hearing loss. The deadlines for the milestone payments stretch from 2024 to 2028.
More Details of the DBTX Stock Deal
Regeneron Pharmaceuticals intends to acquire Decibel Therapeutics via a cash tender offer. Its subsidiary, Symphony Acquisition, will handle this offer. Once the deal closes, Regeneron Pharmaceuticals will acquire all shares not tendered in the offer. The deal is set to close in the third quarter of 2023.
DBTX stock is seeing heavy trading today alongside the REGN deal. This has more than 3 million shares of the stock changing hands as of this writing. For comparison, its daily average trading volume is about 29,000 shares.
DBTX stock is up 71.3% as of Wednesday morning. The stock is also up 129.8% since the start of the year.
There’s even more stock market news that traders will want to know about below!
We’ve got all of the latest stock market coverage traders need to read about on Wednesday. That includes what’s happening with shares of DraftKings (NASDAQ:DKNG) stock, Rivian (NASDAQ:RIVN) stock, and Penn Entertainment (NASDAQ:PENN) stock today. All of that news is ready to go at the following links!
More Stock Market News For Wednesday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
