CAMBRIDGE, Mass. - 2seventy bio, Inc. (NASDAQ:TSVT) has finalized an asset purchase agreement with Novo Nordisk (NYSE:NVO), in which the latter acquires 2seventy bio's Hemophilia A program and rights to its in vivo gene editing technology outside of oncology. This move aligns with 2seventy bio's strategy to concentrate on its FDA-approved CAR T cell therapy for multiple myeloma, Abecma, in partnership with Bristol Myers (NYSE:BMY) Squibb.
The transaction includes the transfer of the Hemophilia A program, the megaTAL technology, and associated intellectual property licenses. The total deal could yield up to $40 million for 2seventy bio. The team from 2seventy bio currently working on the program will join Novo Nordisk to further develop the technology.
Chip Baird, CEO of 2seventy bio, expressed confidence in Novo Nordisk's capability to advance the Hemophilia A treatment and gratitude towards the team members transitioning to the new company. Novo Nordisk's Corporate Vice President, Karina Thorn, highlighted their commitment to developing curative therapies and welcomed the new team members who will contribute to the megaTAL technology's therapeutic applications.
The original research agreement between the two companies dates back to 2019, focusing on gene editing therapy for Hemophilia A. With the completion of the asset sale, 2seventy bio aims to dedicate its efforts to the commercialization and development of Abecma.
This press release contains forward-looking statements regarding the asset sale's terms and 2seventy bio's focus on Abecma. It also includes cautionary notes about the potential risks and uncertainties that could affect the company's actual results, such as the commercial success of Abecma and the impact of the strategic realignment on the business.
The information provided is based on a press release statement from 2seventy bio.
In other recent news, 2Seventy Bio has seen considerable developments. The company's Q1 2024 earnings call revealed a strategic shift towards focusing solely on its product, Abecma, after selling its oncology and autoimmune R&D programs to Regeneron (NASDAQ:REGN). This move, coupled with a 14% workforce reduction, aligns with the company's goal to return to growth in the latter half of the year and break even by 2025. The company reported Abecma's U.S. revenues hit the projected $52 million, and they anticipate further revenue growth in the third and fourth quarters.
However, Goldman Sachs recently downgraded 2Seventy Bio's stock from Neutral to Sell, citing long-term prospects in the competitive landscape for Abecma. The firm highlighted significant competition from Johnson & Johnson and Legend Biotech's Carvykti and expected further market share challenges from therapies such as Gilead Sciences (NASDAQ:GILD) and Arcellx's anito-cel. Goldman Sachs also expressed concerns over 2Seventy Bio's cost structure and margin profile, despite the company's efforts to reduce non-GAAP operating expenses.
These recent developments reflect the company's strategic decisions and growth expectations, as well as the analyst's assessment of the competitive landscape. As 2Seventy Bio navigates these challenges, investors will likely continue to monitor the sales trajectory of Abecma and the progress of cost-cutting measures.
InvestingPro Insights
In the wake of 2seventy bio's strategic shift towards concentrating on its CAR T cell therapy, Abecma, and the sale of its Hemophilia A program to Novo Nordisk, investors are keeping a close eye on the company's financial health and market position. According to InvestingPro data, 2seventy bio has a market capitalization of $193.28 million, reflecting its size and investor valuation in the current market. Furthermore, the company's stock price has been quite volatile, with a 1-month price total return of -16.63% and a 1-year price total return of -61.87%, signaling significant swings in investor sentiment and market valuation over these periods.
InvestingPro Tips highlight several challenges the company faces. 2seventy bio is quickly burning through cash, which could be a concern for investors looking for sustainable financial practices. Additionally, analysts do not anticipate the company will be profitable this year, and they expect a sales decline in the current year. These factors underscore the importance of the company's focus on Abecma and its potential to drive future growth and stability.
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