Regeneron (NASDAQ:REGN) Pharmaceuticals, Inc. (NASDAQ:REGN) announced on Monday that it has successfully completed the acquisition of Decibel Therapeutics, Inc., a move that strengthens Regeneron's gene therapy and auditory programs. The acquisition builds on previous collaborations between the two companies and includes three ongoing gene therapy programs targeting different forms of congenital, monogenic hearing loss.
The most advanced clinical-stage candidate is DB-OTO, currently being studied in the global Phase 1/2 CHORD clinical trial. DB-OTO is an investigational cell-selective, adeno-associated virus (AAV) gene therapy designed to provide durable, physiological hearing to individuals with profound, congenital hearing loss caused by mutations of the otoferlin gene. Preclinical programs include AAV.103 for people with GJB2-related hearing loss and AAV.104 for people with stereocilin (STRC)-related hearing loss.
Leonard S. Schleifer, M.D., Ph.D., Board Co-Chair, President and Chief Executive Officer of Regeneron said that the integration of Decibel's programs will further bolster Regeneron's genetic medicines portfolio and advance their mission of helping patients around the globe.
George D. Yancopoulos, M.D., Ph.D., Board Co-Chair, President and Chief Scientific Officer of Regeneron also expressed his enthusiasm for the acquisition. He highlighted that they have worked with Decibel to build a rich pipeline of programs targeting congenital hearing loss caused by single-gene mutations, including the more common GJB2 and STRC mutations.
The tender offer by Regeneron for shares of Decibel expired on Friday, leading to the successful acquisition. As a result of this transaction, all holders of shares that were validly tendered become entitled to $4.00 per share (without interest), with an additional non-tradeable contractual 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.
Regeneron completed its acquisition of Decibel through a second-step merger of Symphony Acquisition Sub, Inc., with and into Decibel. As a result of the acquisition, Decibel common stock has ceased to be traded on the Nasdaq Global Market.
Regeneron will reflect any changes to its 2023 GAAP and non-GAAP financial guidance as a result of this transaction in the guidance update to be provided in conjunction with Regeneron's third quarter 2023 earnings announcement.
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