Bristol Myers Squibb Acquires 2seventy bio for $286M, Takes Full Control of Abecma

Bristol Myers Squibb (BMS) has announced its acquisition of cell therapy partner 2seventy bio for $286 million, marking a significant consolidation in the pharmaceutical industry. The deal, which represents an 88% premium on 2seventy's closing share price, will give BMS complete ownership of the multiple myeloma treatment Abecma and end the companies' profit-sharing agreement.

Strategic Move Amidst Industry Challenges

The acquisition comes at a critical time for both companies. BMS, facing patent expirations for key products including Yervoy, Opdivo, and Eliquis, has been actively seeking ways to strengthen its portfolio and reduce costs. The company recently increased its cost-saving target to $3.5 billion through 2027, up from the initial $1.5 billion goal set in 2024.

For 2seventy bio, the sale marks the end of a tumultuous journey that began with its spin-off from bluebird bio in 2021. Despite focusing solely on Abecma, the company struggled with financial challenges, leading to layoffs and pipeline reorganizations. CEO Chip Baird stated, "We believe that Abecma will continue to benefit from BMS' experience and resources to ensure this important therapy is delivered to patients who need it."

Abecma's Performance and Future Prospects

Abecma, approved in March 2021 as the first BCMA-targeted CAR-T treatment for relapsed or refractory multiple myeloma, generated $406 million in sales for BMS in 2024. Under the previous agreement, BMS paid $43 million to 2seventy bio as part of their profit-sharing arrangement.

The therapy has shown promise, with expanded FDA approval in April 2024 for use in patients who had undergone at least two prior lines of therapy. However, Abecma faces competition from Johnson & Johnson and Legend Biotech's Carvykti, as well as an upcoming challenger from Gilead Sciences and Arcellx, expected to enter the market next year.

Financial Implications and Industry Outlook

While the $286 million purchase price falls below some analysts' valuations, the deal is expected to benefit BMS by eliminating future profit-sharing costs. Leerink Partners analysts project that BMS could see a return on investment within two years.

The acquisition of 2seventy bio follows a trend of consolidation in the biotechnology sector, coming shortly after bluebird bio's $29 million sale to private equity firms. These developments reflect the ongoing challenges and opportunities in the rapidly evolving pharmaceutical landscape, as companies seek to streamline operations and bolster their product portfolios in the face of patent expirations and increasing competition.