On Monday, Citi maintained a Buy rating on 2Seventy Bio Inc. (NASDAQ:TSVT) and increased the stock's price target to $12.00 from the previous $9.00. This adjustment follows the U.S. Food and Drug Administration's (FDA) approval of Abecma for third-line or higher (3L+) multiple myeloma (MM) patients who have been exposed to three classes of treatment.
The FDA's decision comes on the heels of a positive vote by the Oncologic Drugs Advisory Committee (ODAC) last month, where a majority of panelists recognized the necessity for more therapeutic options in earlier stages of MM treatment.
These panelists noted that patients are often treated with triple and quadruple drug regimens from the outset. They also found the progression-free survival (PFS) response and safety profile of Abecma to be acceptable for use in earlier lines of therapy.
Despite the approval, 2Seventy Bio's share price showed a limited response today, which Citi attributes to market focus shifting to competitive challenges that the company may face. However, Citi remains optimistic about Abecma's market utilization.
The firm's optimism is based on several factors: the expansion of the eligible patient population from fifth-line or higher (5L+) to 3L+ treatment, the ongoing activation of Abecma treatment centers, and increased investment in manufacturing capacity and success rate.
Citi's revised price target of $12.00 represents a $3.00 increase from the previous target. The firm reiterates its Buy/High Risk rating for 2Seventy Bio, signaling confidence in the stock's potential despite acknowledging the competitive risks in the market.
Adding a paragraph with real-time data from InvestingPro and "InvestingPro Tips" could be beneficial to the article by providing readers with up-to-date financial metrics and expert insights that could influence investment decisions. Therefore, this additional information would be a valuable enhancement to the article. Here's the new section to be added:
"In light of Citi's recent analysis of 2Seventy Bio Inc. (NASDAQ:TSVT), real-time data from InvestingPro offers additional insights into the company's financial health and stock performance. As of the last twelve months ending Q4 2023, 2Seventy has a market capitalization of $252.45 million and a price-to-book ratio of 1.07, suggesting that the stock may be reasonably valued in terms of its assets.
Still, investors should note the company's negative P/E ratio and the significant revenue decline of -80.98% in the last quarter, indicating potential challenges ahead. Despite this, analysts are recognizing a strong return over the last three months with a 23.93% price total return, and the fact that liquid assets exceed short-term obligations. For those considering a Pro or Pro+ subscription to Investing.com, remember to use the exclusive coupon code PRONEWS24 for an additional 10% off."
Please replace "TICKER" with "TSVT" in the provided InvestingPro link: https://www.investing.com/pro/TSVT
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