CAMBRIDGE, Mass. - 2seventy bio, Inc. (NASDAQ:TSVT), a biotechnology firm, has completed an asset purchase agreement with Regeneron (NASDAQ:REGN) Pharmaceuticals, Inc., divesting its oncology and autoimmune research and development programs.
As a result, Regeneron has taken over approximately 160 2seventy bio employees to spearhead its new cell medicines division. This strategic move allows 2seventy bio to concentrate on the development and commercialization of Abecma (idecabtagene vicleucel), its BCMA-targeted CAR T cell therapy for multiple myeloma, in partnership with Bristol Myers (NYSE:BMY) Squibb (BMS).
Following the transaction, 2seventy bio's CEO, Chip Baird, expressed confidence in the company's narrowed focus, highlighting the potential of Abecma to reach more patients. The deal has streamlined 2seventy bio's operations, reducing its workforce to approximately 65 employees, mainly in quality and support roles.
The company anticipates that the cost savings from the reduced headcount and the sale of pipeline assets to Regeneron will extend its cash runway beyond 2027. 2seventy bio will continue to oversee quality control of lentiviral vector (LVV) for Abecma.
Investors and industry observers note that the shift in 2seventy bio's strategy may streamline its focus but also comes with risks associated with concentrating on a single product line.
The information herein is based on a press release statement.
InvestingPro Insights
In light of 2seventy bio, Inc.'s recent strategic move to divest certain research and development programs, investors may find the following metrics and insights from InvestingPro particularly relevant:
InvestingPro Data:
- Market Cap (Adjusted): 274.51M USD, showcasing the company's current valuation in the market.
- Revenue Growth (Quarterly) for Q1 2023: -80.98%, indicating a significant decline in revenue compared to the previous quarter.
- Price, Previous Close: 5.38 USD, reflecting the stock's latest closing price which investors can use as a reference point.
InvestingPro Tips:
- 2seventy bio is significantly returning over the last week, with a 1 Week Price Total Return as of the latest data point at 9.18%. This could be indicative of market optimism following the asset purchase agreement with Regeneron Pharmaceuticals.
- Analysts do not anticipate the company will be profitable this year, which aligns with the company's own cautionary statements regarding the risks and uncertainties of their future financial performance.
For those seeking a deeper dive into 2seventy bio's financials and strategic outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/TSVT. These insights can help investors gauge the potential risks and rewards of investing in the company post-realignment. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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