Rocket Pharmaceuticals (NASDAQ: RCKT) acquires Renovacor (NYSE: RCOR) in an all-stock deal to strengthen its position in AAV-based gene therapy for heart disease.
Under the agreement, Renovacor shareholders will receive approximately 0.1676 shares of Rocket in exchange for each Renovacor share (subject to adjustment) and are is expected to own approximately 4.6% of Rocket, following the merger.
Rocket said the exchange ratio implies an equity transaction value of approximately $53 million, or approximately $2.60 per Renovacor share, based on the volume-weighted average trading price of the shares. Rocket $15.51 for the 30 trading days through September 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 Sept. 20 press release. .
“The acquisition of Renovacor aligns with our strategy to expand our leadership position in AAV-based gene therapy for heart disease and provides us with a perfect opportunity to further our mission of transforming the lives of patients with heart disease. heart failure 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 major shareholder of Rocket and Renovacor, has agreed to vote in favor of acquiring Renovacor as a shareholder of Rocket, Rocket noted.
The transaction, which is expected to close by the first quarter of 2023, is subject to shareholder approval of both companies, all required regulatory approvals and closing conditions.