Bristol Myers acquires 2seventy bio

Bristol Myers Squibb recently announced its decision to acquire its partner 2seventy bio, a prominent player in the CAR-T cell therapy sector, for $286 million in cash. This acquisition marks a significant development in the collaboration between the two companies, which have been working together on Abecma, a cell therapy targeting multiple myeloma. Abecma has been in the market for several years and has faced stiff competition from other treatments like Carvykti, developed by Johnson & Johnson in collaboration with Legend Biotech.

Since the FDA approval of Abecma, the landscape for multiple myeloma treatments has evolved significantly. Various other therapies have entered the market, creating a challenging environment for Abecma. Additionally, the complexities involved in the manufacturing process have further intensified the pressure on the therapy's performance.

This acquisition comes shortly after another notable development in the biotech sector, where a consortium of investors acquired bluebird bio, a gene therapy company, at a considerably reduced valuation. 2seventy bio, originally part of bluebird bio, split from the company in November 2021. The separation occurred at a time when the gene therapy market faced increasing challenges.

Chip Baird, CEO of 2seventy bio, stated that the acquisition by Bristol Myers represents the culmination of their strategic journey. He emphasized the belief that Abecma would benefit from Bristol Myers' extensive experience and resources, ensuring that this critical therapy reaches patients who need it.

In recent years, 2seventy bio and Bristol Myers have achieved significant milestones with Abecma, including a third-line approval last year. However, their joint efforts have also seen setbacks, such as the shelving of a Phase 3 trial for early-line treatment in September. This decision was aimed at saving 2seventy bio $80 million, enabling the company to reach a financial break-even point within the year.

Throughout their collaboration, the two companies have also discontinued other projects in their pipeline. 2seventy bio has faced several challenges, including workforce reductions and the sale of most of its research and development operations to Regeneron for a modest upfront payment of $5 million. Additionally, the company transferred a hemophilia A treatment candidate and in vivo gene editing technology to Novo Nordisk.

At one time, 2seventy bio's stock price reached a peak of $38 per share. However, Bristol Myers is acquiring the company for $5 per share. This acquisition provides Bristol Myers with full operational control, enhances business efficiencies, and ensures continuity for an asset that remains vital in the multiple myeloma treatment landscape, as noted by Lynelle Hoch, president of cell therapy at Bristol Myers.

Over the past few years, Bristol Myers has actively expanded its oncology portfolio through acquisitions, including companies like RayzeBio, which specializes in radiopharmaceuticals, and Mirati Therapeutics, known for its focus on KRAS inhibitors. The company also acquired an antibody-drug conjugate asset from Orum Therapeutics, further strengthening its position in the oncology field.