2seventy Bio, Inc. (NASDAQ: TSVT) is experiencing a notable uptick in its stock value, registering a robust 39.29% increase to reach $5.59 at the latest market check. This surge is propelled by the unveiling of the company’s strategic initiatives, prominently featuring an asset divestment arrangement.
In a recent announcement, 2seventy (TSVT) declared a comprehensive transformation, reorienting its corporate trajectory to concentrate exclusively on advancing the commercialization and development of Abecma (idecabtagene vicleucel). Abecma stands as TSVT’s BCMA-targeted CAR T therapy designed for multiple myeloma.
The unveiled measures result from an exhaustive evaluation of the company’s business by its Board of Directors, exploring various strategic alternatives. This strategic realignment is anticipated to yield annual savings of around $150 million in 2024 and approximately $200 million in 2025, encompassing one-time restructuring costs of roughly $8 million.
Moreover, the company foresees a prolonged cash runway extending beyond 2027. In tandem with this strategic realignment, 2seventy has inked an asset purchase agreement (“APA”) with Regeneron Pharmaceuticals, Inc., as disclosed in a separate press release today.
This agreement entails the divestment of the company’s oncology and autoimmune research and development programs, clinical manufacturing capabilities, and associated platform technologies to Regeneron. The majority of the outstanding research and development team will transition to Regeneron as part of this agreement.
The future trajectory of 2seventy will be sharply honed in on Abecma, boasting a streamlined team and a significantly revised cost structure and financial profile. This strategic approach not only provides 2seventy with a robust financial runway but also positions it to collaborate closely with partners at BMS.
TSVT is in collaboration with BMS for the potential launch of Abecma’s third-line later in the year, aiming for resurgence in the commercial business. Concurrently, recognizing the reshaped focus of the company, 2seventy has made the decision to reduce the remaining workforce, aligning it more closely with the company’s refined objectives and reducing overall expenses.