The proposed acquisition will enhance the ongoing partnership between Decibel and Regeneron and the partnership aims to expedite and provide additional resources for essential gene therapy initiatives targeting hearing loss
Regeneron to acquire Decibel Therapeutics in $109m deal. (Credit: kalhh from Pixabay)
Regeneron Pharmaceuticals has announced its intention to purchase Decibel Therapeutics, a biotechnology company in the clinical stage, in a transaction valued at roughly $109m.
Decibel Therapeutics is focused on advancing treatments that have the potential to restore and enhance hearing and balance. These areas represent significant gaps in medical treatment.
The proposed acquisition will enhance the ongoing partnership between Decibel and Regeneron. This collaboration aims to expedite and provide additional resources for essential gene therapy initiatives targeting hearing loss.
The overall valuation of Decibel stands at an equity value of about $109m upon completion of the transaction. This valuation could potentially increase to approximately $213m if specific CVR milestones are successfully met.
Decibel president and CEO Laurence Reid said: “We at Decibel are deeply committed to discovering and advancing innovative new therapies with the potential to be transformative for people with severe forms of hearing loss.
“We have built a pipeline of gene therapy product candidates for the ear that we believe have such potential. After full consideration, the Decibel Board has determined that this transaction is the best way to maximize shareholder value and ultimately benefit patients.
“We have collaborated with our colleagues at Regeneron for the past six years and have huge respect for their research and development capabilities. We have full confidence that with Regeneron’s expertise and resources the Decibel pipeline can be optimally developed, and our team is committed to enabling that long-term success.”
Decibel and Regeneron initiated their initial collaboration in 2017 and later extended it in 2021. Together, they are actively engaged in the development of three distinct gene therapy initiatives aimed at addressing various forms of congenital, monogenic hearing loss.
One of these programmes, known as DB-OTO, is presently undergoing a global Phase 1/2 CHORDTM clinical trial. DB-OTO is an investigational gene therapy employing an adeno-associated virus (AAV) that is selectively targeted to specific cells. Its purpose is to establish lasting and natural hearing function in individuals afflicted with profound, congenital hearing loss due to mutations in the otoferlin gene.
The collaborative efforts also encompass preclinical programmes such as AAV.103, designed to aid individuals with GJB2-related hearing loss, and AAV.104, intended to assist those with stereocilin (STRC)-related hearing loss.
Regeneron Board co-chair, chief scientific officer and president George Yancopoulos said: “We are delighted to announce the planned acquisition of Decibel, who have been long-standing collaborators, notable for their deep scientific knowledge and commitment to people with hearing loss.
“DB-OTO, our shared lead investigational gene therapy, will soon reach patients in its first clinical trial, offering new promise to children with this rare form of congenital hearing loss, as well as a potential proof-of-concept for future gene therapies addressing more common forms of genetic hearing loss.
“We believe that Decibel’s assets and specialised team will further strengthen our genetic medicines portfolio, enabling Regeneron to accelerate the development of innovative genetic therapies and a rich pipeline of hearing loss treatments.”
The deal is anticipated to complete in the third quarter of 2023.
Wachtell, Lipton, Rosen & Katz is the chosen legal counsel for Regeneron throughout the transaction. On the other hand, Decibel has enlisted Centerview Partners and Leerink Partners as its financial advisors, while Wilmer Cutler Pickering Hale and Dorr is providing legal counsel to Decibel.