Bristol Myers Squibb Acquires Cancer Cell Therapy Partner 2seventy Bio in $286M Deal

Bristol Myers Squibb (BMS) is taking full control of ABECMA—its blockbuster multiple myeloma cell therapy—by acquiring its partner, 2seventy bio, in a $286 million deal. 2seventy bio, which spun off from Bluebird Bio in 2021, has ABECMA as its last remaining asset. Currently, BMS (NASDAQ: BMY) and 2seventy share U.S. commercialization of the therapy, but this buyout gives BMS full ownership as it navigates an increasingly competitive multiple myeloma market. The acquisition could also help push forward innovation in cancer cell therapy.

Bristol Myers Squibb Acquires 2seventy Bio in $286M Deal, Paying $5 Per Share with a 78.5% Premium

BMS is set to fully acquire 2seventy bio in a $286 million deal, taking complete control of ABECMA, their top-selling CAR T cell therapy for multiple myeloma. The move comes after a turbulent three years for 2seventy, which spun off from Bluebird Bio in 2021. Once led by Bluebird’s longtime CEO Nick Leschly—who dubbed himself as “chief kairos officer”—the company shifted focus exclusively to ABECMA last year under current CEO Chip Baird. BMS, already responsible for ABECMA’s manufacturing and ex-U.S. commercialization, is now bringing the entire operation in-house as competition in the multiple myeloma space heats up.

2seventy’s financial struggles paved the way for this deal. The company posted a $217.57 million net loss in 2023 on just over $100 million in revenue, prompting major cost-cutting moves, including a 40% workforce reduction in September 2023, followed by another 14% cut (around 30 jobs) in early 2024. 

Under the terms announced Monday night, BMS will pay $5 per share, a 78.5% premium over 2seventy’s closing price but a sharp drop from its $38 debut price in 2021. Factoring in 2seventy’s cash reserves, the net deal value stands at $102 million. “A year ago, 2seventy decided to focus entirely on unlocking the value of ABECMA,” said CEO Chip Baird, emphasizing the therapy’s potential to extend time for multiple myeloma patients. Now, with BMS taking the reins, the pharma giant aims to push cell therapy innovation even further.

Abecma Received FDA Approval in 2021 for Relapsed or Refractory Multiple Myeloma After Four or More Lines of Therapy

ABECMA, a BCMA-directed genetically modified autologous T cell therapy, originally won FDA approval in 2021 for patients with relapsed or refractory multiple myeloma after four or more lines of therapy. A label expansion last year lowered the threshold to two prior treatments, broadening its reach. 

In 2021, 2seventy Bio spun off from Bluebird Bio, inheriting its cancer cell therapies and $442 million in funding. This followed ABECMA’s approval as the first CAR T-therapy for multiple myeloma, though its early lead was quickly challenged when Johnson & Johnson and Legend Biotech gained FDA approval for CARVYKTI. CARVYKTI is now the only BCMA-targeted treatment approved by the U.S. FDA for relapsed or refractory multiple myeloma after just one prior line of therapy. 

Last year, the FDA expanded ABECMA’s approval to include third-line treatment for multiple myeloma, broadening its market potential. However, this decision came alongside CARVYKTI’s expanded approval for second-line use in multiple myeloma. While CARVYKTI holds this advantage, it is associated with a movement disorder side effect, which has not been observed with ABECMA.

As the competition in the multiple myeloma treatment space intensifies, ABECMA faces additional pressure from emerging therapies targeting the same BCMA protein. It competes not only with CARVYKTI but also with Gilead Sciences and Arcellx’s candidate, anitocabtagene autoleucel (anito-cel), which is expected to reach the market next year. Like ABECMA and CARVYKTI, anito-cel targets BCMA. Anito-cel has shown promising efficacy in late-line multiple myeloma, with results that analysts say rival those of CARVYKTI. What sets anito-cel apart, however, is its potentially improved safety profile, particularly in reducing delayed neurotoxicity, such as Parkinsonism. This advantage could position anito-cel as a compelling alternative for patients seeking safer treatment options, challenging ABECMA’s niche.

BMS Aims to Strengthen ABECMA’s Position in Multiple Myeloma with Ongoing Clinical Trials and Acquisition

With the acquisition expected to close in Q2 2025, BMS aims to leverage its resources to solidify ABECMA’s position in the growing multiple myeloma market. Showing more potential, ABECMA’s clinical development program includes ongoing studies, KarMMa-2 and KarMMa-3, focusing on earlier lines of treatment for multiple myeloma. “We believe ABECMA will continue to benefit from BMS’ experience and resources to ensure this important therapy reaches the patients who need it,” said 2seventy CEO Chip Baird. 

Bolstering its clinical portfolio, BMS struck a deal with BioArctic AB at the end of last year to advance the development of anti-amyloid-beta antibody treatments. Under the agreement, Bristol Myers Squibb will oversee the global development and commercialization of the investigational drugs BAN1503 and BAN2803, along with related products.

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Author

Bernice Lottering