2seventy bio Announces Completion of Oncology and Autoimmune Pipeline Divestiture to Regeneron
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The transaction between 2seventy bio and Regeneron Pharmaceuticals signifies a strategic pivot for both entities, with substantial implications for their respective operational focuses and revenue streams. By divesting its oncology and autoimmune R&D programs, 2seventy bio is streamlining its portfolio to concentrate on Abecma, a CAR T cell therapy. This move can be interpreted as a consolidation strategy, likely intended to optimize resource allocation towards the most promising or commercially viable product. The market for CAR T cell therapies is rapidly expanding and Abecma's focus on multiple myeloma positions 2seventy bio in a niche yet growing segment.
For Regeneron, acquiring these programs potentially enhances its pipeline diversity and innovation capabilities. The addition of approximately 160 employees suggests a significant investment in human capital to support this new cell medicines business, which could accelerate product development cycles. However, the success of this expansion will depend on the seamless integration of the new team and the effective management of the acquired assets.
The collaboration with Bristol Myers Squibb on Abecma's development and commercialization also merits attention, as partnerships in the pharmaceutical industry can lead to shared risks and benefits. The synergy between the two companies could expedite market penetration and bolster commercial success. Nonetheless, the market will closely monitor the performance of Abecma to gauge the long-term viability of this strategic focus.
From a financial perspective, this asset purchase agreement could be a pivotal moment for 2seventy bio. The divestiture of its R&D programs to Regeneron likely resulted in a significant influx of capital, which 2seventy can now deploy towards the development and commercialization of Abecma. This reallocation of resources could improve operational efficiencies and potentially lead to a more focused and effective use of capital.
Investors will likely scrutinize the terms of the APA, seeking to understand the immediate financial impact, such as any upfront payments received or potential milestone payments tied to the development progress of the sold programs. Moreover, the market will be interested in how the deal affects 2seventy bio's burn rate and whether it extends the company's cash runway, thereby reducing near-term financing risk.
Regeneron's financial commitment to expanding into cell medicines may be seen as a long-term growth strategy, but it also introduces R&D risk. The success of the acquired programs will be critical in justifying the investment. Investors should consider the implications of this move on Regeneron's balance sheet, R&D expenses and potential for future revenue diversification.
In the realm of medical research, the focus on Abecma by 2seventy bio represents a strategic bet on the efficacy and market potential of this particular CAR T therapy. Abecma's targeting of BCMA (B-cell maturation antigen) in multiple myeloma is a promising approach, as BCMA is commonly overexpressed in myeloma cells. The clinical outcomes and patient responses to Abecma will be critical in determining its competitive position in the oncology market.
The transfer of R&D programs to Regeneron also suggests a shift in the research landscape, with Regeneron potentially gaining an edge in oncology and autoimmune diseases. The expertise of the 160 employees joining Regeneron could be a driving force behind new cell medicine breakthroughs. The success of these programs will hinge on the ability to translate research into viable treatments, which requires navigating clinical trials and regulatory hurdles effectively.
For stakeholders, the long-term implications will include monitoring the progress of Abecma through further clinical trials, its adoption by healthcare providers and its reimbursement by insurers. The collaboration with Bristol Myers Squibb could be advantageous in navigating these challenges, leveraging BMS's experience in bringing therapies to market.
- Company Now Exclusively Focused on Development and Commercialization of Abecma -
“With the completion of the Regeneron transaction, 2seventy officially embarks on our new strategic path forward to focus on unlocking the value of Abecma,” said Chip Baird, CEO. “We are pleased to have successfully transitioned our innovative cell therapy pipeline to Regeneron and excited for the team members who have joined Regeneron Cell Medicines to continue their important work of developing new treatments for people with cancer. We are also extremely excited about our own future with the potential to bring Abecma to more patients in earlier lines.”
Based on the Company’s recent strategic actions, 2seventy bio includes approximately 65 full-time, permanent employees, primarily in quality and supporting functions. With the resulting cost savings from reduced headcount and the sale of the pipeline assets to Regeneron, 2seventy bio has extended cash runway beyond 2027. The Company will continue to support quality control of lentiviral vector (LVV) for Abecma.
About 2seventy bio
Our name, 2seventy bio, reflects why we do what we do - TIME. Cancer rips time away, and our goal is to work at the maximum speed of translating human thought into action – 270 miles per hour – to give the people we serve more time. With a deep understanding of the human body’s immune response to tumor cells and how to translate cell therapies into practice, we’re applying this knowledge to deliver the first FDA-approved CAR T cell therapy for multiple myeloma to as many patients as possible. Importantly, we remain focused on accomplishing our mission by staying genuine and authentic to our “why” and keeping our people and culture top of mind every day.
For more information, visit www.2seventybio.com.
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2seventy bio is a trademark of 2seventy bio, Inc.
Cautionary Note Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of applicable laws and regulations. These statements include, but are not limited to: statements about our financial position and cash runway; statements about our plans, strategies, timelines and expectations with respect to regulatory approval and related filings for ABECMA; statements regarding our plans to continue to advance our manufacturing strategy to expand capacity and increase manufacturing efficiency for ABECMA across the supply chain and our plans to increase the number of ABECMA treating sites; statements regarding expected benefits from our strategic collaboration. Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, the risk that ABECMA will not be as commercially successful as we may anticipate; the risk that Abecma may not receive FDA approval for the indication described in this release in the currently anticipated timeline or at all, that any marketing approvals, if granted, may have significant limitations on their use; the risk that our strategic realignment to focus on the development and commercialization of Abecma may not be as successful as anticipated, may fail to achieve the anticipated cost savings, and may cause disruptions in our business that could make it difficult to achieve our strategic objectives; and the risk that we are unable to manage our operating expenses or cash use for operations. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023 as supplemented and/or modified by our most recent Quarterly Report on Form 10-Q and any other filings that we have made or will make with the Securities and Exchange Commission in the future. All information in this press release is as of the date of the release, and 2seventy bio undertakes no duty to update this information unless required by law.
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Investors:
Elizabeth Pingpank Hickin, 860-463-0469
Elizabeth.pingpank@2seventybio.com
Media:
Jenn Snyder, 617-448-0281
Jenn.snyder@2seventybio.com
Source: 2seventy bio, Inc.
