Bristol Myers Squibb Acquires 2seventy bio for $286 Million, Consolidating Abecma Ownership

Bristol Myers Squibb (BMS) has announced its acquisition of 2seventy bio for $286 million, marking a significant shift in the ownership structure of the CAR-T therapy Abecma. This strategic move ends the profit-sharing agreement between the two companies and consolidates BMS's control over the multiple myeloma treatment.

Deal Details and Strategic Rationale

BMS will purchase all outstanding shares of 2seventy bio for $5 per share, representing an 88% premium over the biotech's closing price on Friday. The acquisition, expected to close in the second quarter, is subject to antitrust clearances and shareholder approval.

Chip Baird, CEO of 2seventy bio, stated, "The strategic rationale for this acquisition is clear and today's announcement represents the culmination of the journey for 2seventy bio. We believe that Abecma will continue to benefit from BMS's experience and resources to ensure this important therapy is delivered to patients who need it."

The deal aligns with BMS's recent pledge to seek opportunities that strengthen its portfolio, as expressed by CEO Chris Boerner during a recent earnings call. Analysts at Leerink Partners suggest that the acquisition will help BMS reduce "future profit-sharing costs in Abecma."

Abecma Performance and Market Position

Abecma, approved in March 2021, is the industry's first BCMA-targeted CAR-T treatment for relapsed or refractory multiple myeloma. In 2024, the therapy generated $406 million in worldwide sales, with BMS paying $43 million to 2seventy bio as part of their profit-sharing arrangement.

The treatment has seen expanded use, with the FDA approving it in April 2024 for patients who had undergone at least two prior lines of therapy. This earlier-line treatment setting has contributed to its growing market presence.

Industry Context and BMS Strategy

This acquisition comes amid significant changes in the pharmaceutical landscape. BMS is facing loss of exclusivity for three of its top-performing assets, including cancer therapies Yervoy and Opdivo, as well as the blood thinner Eliquis. These patent expirations, set to occur between 2025 and 2028, have prompted BMS to pursue strategic initiatives to bolster its portfolio and reduce costs.

In April 2024, BMS launched a "strategic productivity initiative" aimed at lowering expenditure by $1.5 billion through 2025. This cost-cutting campaign included approximately 2,200 layoffs and a reduction in management layers. The company recently increased its savings target by an additional $2 billion through 2027.

The acquisition of 2seventy bio and the consolidation of Abecma ownership represent a strategic move by BMS to streamline operations, reduce profit-sharing costs, and strengthen its position in the competitive CAR-T therapy market.