Bristol Myers Squibb (BMS) has agreed to acquire its longtime cell therapy partner 2seventy bio in a deal valued at $286m.
Announced after markets closed on 10 March, the $5-per-share offer represents an 88% premium on 2seventy bio’s closing share price on Friday, 7 March. The market reacted favourably with 2seventy bio’s share price increasing by 76% since the news announcement. . Adjusted for 2seventy bio’s cash reserves, the net acquisition cost for BMS is approximately $102m. The transaction is expected to close in Q2 2025.
The two companies first teamed up in 2021 when 2seventy bio was spun out of bluebird bio. They co-developed Abecma (idecabtagene vicleucel), a BCMA-targeted chimeric antigen receptor (CAR)-T cell therapy for multiple myeloma, which secured US Food and Drug Administration (FDA) approval in April 2024. However, Abecma has faced increasing competition in the multiple myeloma space, particularly from Johnson & Johnson and Legend Biotech’s BCMA CAR-T Carvykti (ciltacabtagene autoleucel).
In 2024, Abecma generated $406m in sales, down from $472m in 2023, notably due to Carvykti’s rapid adoption. Carvykti holds an approval as a second-line treatment , while Abecma remains limited to third or later=line use . According to GlobalData’s Pharma Intelligence Center, Carvykti is projected to generate $7.2bn in sales in 2030, compared to Abecma’s forecast of $775m in the same year.
GlobalData is the parent company of Pharmaceutical Technology.
In September 2024, the two companies announced plans to discontinue enrolment of subjects in the Phase III KarMMa-9 clinical trial (NCT06045806) of Abecma for newly diagnosed multiple myeloma patients. The reason for the suspension was said to be influenced by the “evolving treatment landscape for NDMM [newly diagnosed multiple myeloma]”, with the introduction of more intensive and prolonged induction therapies like Carvykti.
The acquisition follows a challenging few years for 2seventy bio. In 2023, the company divested its R&D pipeline – including cell therapy candidates for non-Hodgkin lymphoma (NHL), acute myeloid leukaemia (AML), and ovarian cancer – to Regeneron for just $5m upfront, refocusing its business solely on Abecma’s commercialisation with BMS. Since then, 2seventy bio has undergone workforce reductions and offloaded additional assets, including a haemophilia A programme and in vivo gene editing technology to Novo Nordisk in June 2024.
In the announcement accompanying the acquisition, 2seventy bio’s CEO Chip Baird said: “The strategic rationale for this acquisition is clear and today’s announcement represents the culmination of the journey for 2seventy bio.”
It’s not been an easy ride for cell and gene companies recently. The move comes just a few weeks after bluebird bio had to be rescued by investment firms Carlyle and SK Capital Partners. Bluebird has faced years of financial struggles, declining stock performance, and mounting cash flow concerns, with the investment firms stepping in to provide the necessary capital to keep the company’s gene therapy programmes afloat.
