Renovacor Inc (RCOR) Stock Rose 17% Pre-Market. How Did That Happen?

Following an acquisition agreement, shares of Renovacor Inc. (NYSE: RCOR) rose 17.37% to $2.23 in premarket trading. RCOR closed the last session at $1.90, up 1.06% or $0.02 from the previous session.

What deal has RCOR struck?

Renovacor Inc (RCOR) and Rocket Pharmaceuticals (RCKT) announced a definitive agreement today.

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  • An all-stock transaction will be executed under the agreement, with Rocket acquiring RCOR for a price of approximately $2.60 per share.
  • In order to calculate the deal price, the volume-weighted average trading price of Rocket shares of $15.51 for the 30 days was used leading up to and including Monday, September 19, 2022.
  • Currently, the transaction is expected to close by the first quarter of 2023, after unanimous approval by both companies boards of directors.
  • It is an excellent opportunity for RCKT to carry out its mission of transforming the lives of heart failure patients through the power of gene therapy as a result of the acquisition of Renovacor.
  • RCKT will be well-positioned to provide these patients with the best chance for success by combining scientifically compelling preclinical work with its clinical, regulatory, and CMC expertise.

Details of the transaction

  • Renovacor shareholders will receive 0.1676 shares of Rocket as a return on their RCOR shares under the terms of the definitive agreement.
  • After the transaction closes, the shareholders are expected to own approximately 4.6% percent of Rocket equity.
  • On the basis of the volume weighted average trading price of Rocket shares of $15.51 for the 30 trading days through and including Monday, September 19, 2022, the equity deal value is approximately $53 million, based on fully diluted shares outstanding and all earnout shares accelerated and vesting, or $2.60 per share of RCOR.
  • Based on Renovacor’s net cash at closing, the exchange ratio may be adjusted.

What difference will RCOR make?

AAV-based gene therapy, REN-001, is Renovacor’s most advanced program targeting patients with BAG3-associated dilated cardiomyopathy (DCM), a severe form of heart failure. Unmet medical needs of BAG3-DCM patients are significant, with rapidly progressive cardiac dysfunction unresponsive to treatments addressing the underlying mechanisms. As a leader in the development of precision therapies for genetically-driven diseases of the heart, Renovacor (RCOR) is a highly experienced company with deep technical expertise. In addition, RCOR has an intellectual property portfolio that is robust and personnel with expertise in BAG3-DCM who is supported by world-class scientific collaborators. AAV-based cardiac gene therapy will enhance Rocket’s leading position with the acquisition of these assets and capabilities.

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