Rocket Pharmaceuticals, Inc. (RCKT), a late-stage, clinical biotechnology company with genetic therapies for rare childhood disorders, Tuesday announced its agreement to acquire Renovacor, Inc. (RCOR), which is focused on AAV-based Cardiac Gene Therapy, in an all-stock transaction for an implied value of around $2.60 per share.
The per share price is based on the volume weighted average trading price of Rocket shares of $15.51 for the 30 trading days through and including September 19.
Under the deal terms, Renovacor shareholders will receive around 0.1676 shares of Rocket in exchange for each of their shares in Renovacor and are expected to own approximately 4.6% percent of Rocket equity immediately following the deal closure.
The boards of directors of both companies have unanimously approved the deal, which is currently expected to close by the first quarter of 2023.
Renovacor’s most advanced program, REN-001, is an AAV-based gene therapy targeting BAG3-associated dilated cardiomyopathy or DCM, a severe form of heart failure.
Gaurav Shah, Chief Executive Officer of Rocket, said, “The acquisition of Renovacor aligns with our strategy to expand our leadership position in AAV-based gene therapy for cardiac disease…. Given the positive pediatric safety data previously announced from our Phase 1 RP-A501 Danon Disease program, and the upcoming pediatric efficacy data and longer-term adult cohort data we anticipate presenting at the Heart Failure Society of America (HFSA) Scientific Meeting at the end of this month, this strategic acquisition gives us what we believe is the broadest platform in the field to address these devastating rare cardiac diseases.”
In the deal, SVB Securities is serving as exclusive financial advisor to Rocket ans Wells Fargo Securities is serving as exclusive financial advisor to Renovacor.
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