During the extended trading session on Friday, the shares of 2seventy bio, Inc. (NASDAQ: TSVT) exhibited a bullish trend, marking a notable 6.72% surge to reach $5.08. This positive momentum served to counterbalance a preceding decline of 3.45% during the regular trading hours, ultimately settling the stock at $4.76. This upward trajectory in TSVT stock precedes the imminent disclosure of the company’s financial results scheduled for this coming Wednesday.
The stock’s recent upward momentum is not solely attributed to this event, but recent developments have evidently contributed to its stabilization. Bristol Myers Squibb (BMY) and 2seventy Bio (TSVT) jointly declared that on April 4, 2024, the U.S. Food and Drug Administration (FDA) granted approval for Abecma, indicated for the treatment of adult patients grappling with relapsed or refractory multiple myeloma after receiving two or more prior lines of therapy.
Abecma has showcased a threefold progression-free survival advantage over conventional regimens for relapsed or refractory multiple myeloma. Consequently, 2seventy bio is now positioned to deliver the promise of cell therapy to patients at an earlier stage of their treatment journey. This regulatory approval serves as a testament to 2seventy’s unwavering commitment towards innovation and its endeavor to propel research in cell therapy, thereby potentially introducing transformative therapies.
2seventy bio has recently finalized an asset purchase agreement (“APA”) with Regeneron Pharmaceuticals, Inc. Per the terms of the APA, Regeneron has assumed ownership of all oncology and autoimmune research and development initiatives and has also onboarded around 160 personnel from 2seventy bio, augmenting its newly established cell medicines business division. Consequently, 2seventy bio will now exclusively concentrate on the commercialization and further development of Abecma.
In light of the company’s recent strategic maneuvers, 2seventy bio’s workforce now comprises approximately 65 full-time, permanent employees, primarily dedicated to quality assurance and ancillary support functions. The resultant cost efficiencies stemming from streamlined workforce and the divestiture of pipeline assets to Regeneron have extended 2seventy bio’s cash runway beyond the year 2027. The company remains steadfast in its commitment to uphold stringent quality control standards for lentiviral vector (LVV) employed in the production of Abecma.
