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

Bristol Myers Squibb has announced its acquisition of 2seventy bio, the cell therapy spinout of Bluebird bio, in a deal valued at $286 million. This strategic move, announced late Monday, marks the end of 2seventy's brief tenure as an independent company and consolidates Bristol Myers' ownership of the multiple myeloma cell therapy, Abecma.

Deal Specifics and Market Impact

The all-cash offer values 2seventy's shares at $5 apiece, representing an 88% premium over the closing price of $2.66 on March 7. However, this valuation is a fraction of the company's worth just a few years ago, reflecting the challenging landscape for cell and gene therapy biotechs.

Bristol Myers will acquire full rights to Abecma, eliminating the profit-sharing arrangement that saw the pharmaceutical giant pay $43 million in costs to 2seventy in 2024. Abecma, which came to market in 2021, generated $406 million in sales for Bristol Myers last year.

2seventy's Journey and Industry Challenges

2seventy bio's short-lived independence highlights the difficulties faced by cell and gene therapy companies in recent years. Spun out from Bluebird bio in 2021, 2seventy initially held promise with an approved product and a pipeline of cell therapies. However, market conditions deteriorated, leading to a series of setbacks:

1. A downturn in the biotech market made fundraising challenging.
2. The company underwent restructuring and sold off its development pipeline to Regeneron and Novo Nordisk.
3. Abecma's launch was hindered by supply constraints and fierce competition from Johnson & Johnson and Legend Biotech's Carvykti.

Chip Baird, CEO of 2seventy, acknowledged the challenges, stating, "Today's announcement represents the culmination of the journey for 2seventy."

Implications for Bristol Myers and Abecma's Future

The acquisition allows Bristol Myers to consolidate its position in the multiple myeloma treatment space. However, industry analysts, including Leerink Partners' David Risinger, suggest the offer indicates "modest confidence in the near-term profit potential" of Abecma.

Bristol Myers now faces the task of improving Abecma's market position against strong competition, including Carvykti, which generated nearly $1 billion in sales last year. Additionally, a new multiple myeloma cell therapy from Gilead Sciences and Arcellx is approaching market entry, further intensifying the competitive landscape.

The deal is expected to close in the second quarter, subject to customary closing conditions.