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2seventy bio (TSVT) Rises More Than 50% in 3 Months: Here's Why

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Shares of 2seventy bio, Inc. (TSVT - Free Report) have rallied 51.4% in the past three months against the industry’s decrease of 7.6%.

The company is developing and commercializing its chimeric antigen receptor (CAR) T cell immunotherapy, Abecma (idecabtagene vicleucel), in partnership with drug giant, Bristol Myers Squibb (BMY - Free Report) in the United States.

Abecma was, until now, approved in the United States for adult patients with triple-class exposed relapsed or refractory multiple myeloma (R/R MM) after four or more prior lines of therapy. BMY assumes the sole responsibility for Abecma’s manufacturing and commercialization in ex-U.S. markets.

Importantly, earlier this month, the FDA approved Abecma for earlier lines of treatment.  The FDA approved Abecma for the treatment of adult patients with relapsed or refractory multiple myeloma after two or more prior lines of therapy, including an immunomodulatory agent (IMiD), a proteasome inhibitor (PI) and an anti-CD38 monoclonal antibody.

An approval was mostly expected as the FDA Oncologic Drugs Advisory Committee voted in favor (8:3) of Abecma’s benefit/risk profile for patients with triple-class exposed relapsed or refractory multiple myeloma in March 2024.

Abecma was recently approved in the European Union for treating adult patients with triple-class exposed relapsed/refractory multiple myeloma after two prior lines of therapy.

Abecma generated sales worth $472 million in 2023, up 22% year over year. The approvals for earlier lines of R/R MM are likely to boost sales further in 2024 and beyond.

Meanwhile, 2seventy bio completed the sale of its oncology and autoimmune research and development (“R&D”) pipeline and assets to Regeneron Pharmaceuticals (REGN - Free Report) earlier this month. The companies entered into an asset purchase agreement in January 2024.

The strategic action is likely to result in annualized cost savings of almost $150 million in 2024 and around $200 million in 2025 for 2seventy bio, which, in return, are likely to extend its cash runway beyond 2027.

These could have been the factors driving the stock’s rise in the said time frame.

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It is to be noted that following the R&D asset divestiture to REGN, 2seventy bio will now exclusively focus on the commercialization and development of Abecma.

With a streamlined operation and workforce primarily focused on making Abecma available to more and more patients in the United States, we expect the immunotherapy’s sales to be strong, which should push the stock upward in 2024.

Zacks Rank & Stock to Consider

2seventy bio currently carries a Zacks Rank #3 (Hold).

A top-ranked stock in the healthcare sector is ADMA Biologics, Inc. (ADMA - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share have improved from 22 cents to 30 cents. Year to date, shares of ADMA have rallied 36.3%.

ADMA’s earnings beat estimates in three of the trailing four quarters and met the same once, the average surprise being 85.00%.

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