Regeneron Pharmaceuticals has entered into a definitive agreement to acquire hearing loss specialist Decibel Therapeutics in a deal worth as much as $213m.

The transaction gives Regeneron access to investigational gene therapy, DB-OTO, which is designed to provide hearing to people with otoferlin-related hearing loss. The candidate is currently in phase 1/2 clinical development.

Under the terms of the agreement, Regeneron will pay $4 per share of Decibel common stock, with an additional non-tradeable contingent value right (CVR) for $3.50 apiece, upon achievement of certain clinical development and regulatory milestones for DB-OTO.

The deal gives Decibel a total equity value of about $109m, based on the amount payable at closing, though that valuation increases to $213m if the CVR milestones are met.

The agreement builds on the existing gene therapy collaboration between Regeneron and Decibel aimed at developing three programmes targeting different forms of congenital, monogenic hearing loss.

There are currently approved medical therapies for congenital hearing loss, which affects approximately 1.7 out of every 1,000 newborns in the US.

While hearing loss resulting from mutations of the otoferlin gene is rare, the majority of permanent, congenital hearing loss cases diagnosed in developed countries are caused by a single gene defect, making them attractive targets for gene therapy.

George Yancopoulos, Regeneron’s chief scientific officer and president, said: “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 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.”

Also commenting on the proposed acquisition, Laurence Reid, president and chief executive officer of Decibel, said: "We have built a pipeline of gene therapy product candidates for the ear that we believe have such potential… 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.”

The deal is expected to close in the third quarter of this year.

Reference：
https://www.pmlive.com/pharma_news/regeneron_to_acquire_decibel_therapeutics_in_deal_worth_up_to_$213m_1496074