Rocket Pharmaceuticals (NASDAQ:RCKT) is acquiring Renovacor (NYSE:RCOR) in an all-stock deal to bolster its position in AAV-based gene therapy for cardiac diseases.
Under the agreement, Renovacor shareholders will receive ~0.1676 shares of Rocket in exchange for each Renovacor share (subject to adjustment) and are expected to own ~4.6% of Rocket, following the merger.
Rocket said the the exchange ratio implies an equity deal value of ~$53M, or ~$2.60 per share of Renovacor, based on the volume weighted average trading price of Rocket shares of $15.51 for the 30 trading days through Sept. 19.
Renovacor’s most advanced program REN-001, is an AAV-based gene therapy targeting BAG3-associated dilated cardiomyopathy (DCM), a form of heart failure, Rocket said in a said in a Sept. 20 press release.
“The acquisition of Renovacor aligns with our strategy to expand our leadership position in AAV-based gene therapy for cardiac disease and gives us a perfect opportunity to continue on our mission to transform the lives of heart failure patients through the power of gene therapy,” said Rocket CEO Gaurav Shah.
The boards of directors of both companies have approved the transaction,
RTW Investments, a significant shareholder of both Rocket and Renovacor, agreed to vote in favor of the Renovacor acquisition as a Rocket stockholder, Rocket noted.
The transaction, which is expected to close by Q1 2023, is subject to approval by shareholders of both companies, any required regulatory approvals, and closing conditions.