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2seventy bio (TSVT) Divests R&D Assets to Regeneron, Stock Up
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Shares of 2seventy bio, Inc. (TSVT - Free Report) were up 14.9% on Tuesday after the company announced a new strategic re-alignment of its ongoing business operations.
As part of the re-alignment, the company entered into an asset purchase agreement (“APA”) with Regeneron Pharmaceuticals, Inc. (REGN - Free Report) wherein the latter will acquire 2seventy bio’s oncology and autoimmune research and development (“R&D”) pipeline and related platform technologies.
Per the terms of the APA, 2seventy bio is eligible to receive an upfront payment of $5 million from Regeneron as well as milestone payment for the first approved product under this agreement and royalties on net sales of the same. Also, around 160 employees of 2seventy bio will be joining Regeneron as part of the APA.
Based on this agreement with 2seventy bio, Regeneron is looking to make a new company — Regeneron Cell Medicines. It would be an R&D unit that will advance cell therapies in oncology and immunology.
The transaction is expected to close in the first half of 2024, subject to certain customary closing conditions.
Shares of 2seventy bio have plunged 69.6% in the past year compared with the industry’s decline of 12%.
Image Source: Zacks Investment Research
Meanwhile, upon closing of the APA with REGN, Chip Baird will become the new chief executive officer (CEO) of 2seventy bio. Nick Leschly will serve as the chairman of the company’s board of directors.
Importantly, as part of the strategic re-alignment, 2seventy bio will now exclusively focus on the commercialization and development of its BCMA-targeted CAR T therapy, Abecma (idecabtagene vicleucel). The drug is approved for treating adult patients with triple-class exposed relapsed or refractory multiple myeloma after four or more prior lines of therapy.
2seventy bio and Bristol Myers (BMY - Free Report) are jointly developing and commercializing Abecma in the United States.
In November 2023, BMY and TSVT faced a major setback when the FDA informed the companies that it would not be able to give a decision on a supplemental biologics license application (sBLA) for Abecma by the original target date of Dec 16, 2023.
The sBLA sought approval for expanded Abecma for third-line treatment of relapsed or refractory multiple myeloma, which is a much larger indication than the currently approved use.
The FDA’s Oncologic Drugs Advisory Committee (“ODAC”) will now meet to review data from the phase III KarMMa-3 study supporting the sBLA for Abecma.
2seventy bio, along with Bristol Myers, remains focused on supporting a potential third-line launch of Abecma later this year.
2seventy bio is now looking to reduce its existing workforce to lower costs and overall expenses. The company now expects to make annual savings of almost $150 million in 2024 and around $200 million in 2025, which, in return, are likely to extend its cash runway beyond 2027.
Zacks Rank & Another Key Pick
2seventy bio currently carries a Zacks Rank #2 (Buy).
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 62 cents to 69 cents. In the past year, shares of PBYI have risen 9.5%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.
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2seventy bio (TSVT) Divests R&D Assets to Regeneron, Stock Up
Shares of 2seventy bio, Inc. (TSVT - Free Report) were up 14.9% on Tuesday after the company announced a new strategic re-alignment of its ongoing business operations.
As part of the re-alignment, the company entered into an asset purchase agreement (“APA”) with Regeneron Pharmaceuticals, Inc. (REGN - Free Report) wherein the latter will acquire 2seventy bio’s oncology and autoimmune research and development (“R&D”) pipeline and related platform technologies.
Per the terms of the APA, 2seventy bio is eligible to receive an upfront payment of $5 million from Regeneron as well as milestone payment for the first approved product under this agreement and royalties on net sales of the same. Also, around 160 employees of 2seventy bio will be joining Regeneron as part of the APA.
Based on this agreement with 2seventy bio, Regeneron is looking to make a new company — Regeneron Cell Medicines. It would be an R&D unit that will advance cell therapies in oncology and immunology.
The transaction is expected to close in the first half of 2024, subject to certain customary closing conditions.
Shares of 2seventy bio have plunged 69.6% in the past year compared with the industry’s decline of 12%.
Meanwhile, upon closing of the APA with REGN, Chip Baird will become the new chief executive officer (CEO) of 2seventy bio. Nick Leschly will serve as the chairman of the company’s board of directors.
Importantly, as part of the strategic re-alignment, 2seventy bio will now exclusively focus on the commercialization and development of its BCMA-targeted CAR T therapy, Abecma (idecabtagene vicleucel). The drug is approved for treating adult patients with triple-class exposed relapsed or refractory multiple myeloma after four or more prior lines of therapy.
2seventy bio and Bristol Myers (BMY - Free Report) are jointly developing and commercializing Abecma in the United States.
In November 2023, BMY and TSVT faced a major setback when the FDA informed the companies that it would not be able to give a decision on a supplemental biologics license application (sBLA) for Abecma by the original target date of Dec 16, 2023.
The sBLA sought approval for expanded Abecma for third-line treatment of relapsed or refractory multiple myeloma, which is a much larger indication than the currently approved use.
The FDA’s Oncologic Drugs Advisory Committee (“ODAC”) will now meet to review data from the phase III KarMMa-3 study supporting the sBLA for Abecma.
2seventy bio, along with Bristol Myers, remains focused on supporting a potential third-line launch of Abecma later this year.
2seventy bio is now looking to reduce its existing workforce to lower costs and overall expenses. The company now expects to make annual savings of almost $150 million in 2024 and around $200 million in 2025, which, in return, are likely to extend its cash runway beyond 2027.
Zacks Rank & Another Key Pick
2seventy bio currently carries a Zacks Rank #2 (Buy).
A top-ranked stock in the healthcare sector is Puma Biotechnology, Inc. (PBYI - 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 Puma Biotechnology’s 2024 earnings per share have improved from 62 cents to 69 cents. In the past year, shares of PBYI have risen 9.5%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.