Decibel Therapeutics stock rallies as Regeneron moves to buy the biotech company

Decibel Therapeutics Inc.
DBTX,
+1.09%
stock was up 85% in premarket trades on Wednesday after Regeneron Pharmaceuticals Inc.
REGN,
+0.72%
said it would pay $4 a share for the Boston-based clinical-stage biotechnology company with a focus on discovering and developing transformative treatments to restore and improve hearing and balance. The $4 a share stock price to buy Decibel Therapeutics amounts to a 43% premium over its closing price of $2.79 a share on Tuesday. Regeneron’s acquisition price values Decibel Therapeutics at $109 million, or up to $213 million if milestones are met. Prior to Wednesday’s trades, Decibel Therapeutics was up 36% so far in 2023, compared to a 32.7% increase by the Nasdaq.