2seventy bio Announces Sale of Hemophilia A Candidate and MegaTAL In Vivo Gene Editing Technology to Novo Nordisk for up to $40 million
2seventy bio (Nasdaq: TSVT) has finalized an asset purchase agreement with Novo Nordisk, selling its Hemophilia A program and in vivo gene editing technology for up to $40 million. The divestiture includes the transfer of related intellectual property and the team working on the program to Novo Nordisk. This move allows 2seventy bio to concentrate exclusively on the development and commercialization of Abecma, its BCMA-targeted CAR T cell therapy for multiple myeloma, in partnership with Bristol Myers Squibb. Novo Nordisk aims to advance the Hemophilia A program, leveraging the megaTAL technology.
- Potential payments of up to $40 million from Novo Nordisk.
- Focused investment into Abecma, a CAR T cell therapy for multiple myeloma.
- Strengthened collaboration with Bristol Myers Squibb.
- Loss of ownership and control over the Hemophilia A program.
- Divestiture of in vivo gene editing technology outside oncology.
Insights
The sale of the Hemophilia A candidate and MegaTAL gene editing technology to Novo Nordisk positions 2seventy bio to focus exclusively on their flagship product, Abecma. This move could be strategically beneficial as it allows 2seventy to allocate more resources and attention towards the commercialization of Abecma, which is co-developed with Bristol Myers Squibb.
The potential
However, investors should consider that this divestiture also means 2seventy is offloading future potential from the gene editing technology. The long-term impact of this depends on how successfully Novo Nordisk develops and commercializes the acquired assets. If Novo Nordisk succeeds, 2seventy might miss out on substantial future revenues. Therefore, while this deal adds immediate liquidity and focus, it also comes with an opportunity cost.
This agreement emphasizes a shift for 2seventy bio towards specializing in CAR T cell therapy, specifically Abecma. For retail investors, it's important to understand the significance of CAR T cell therapy in oncology. Abecma targets BCMA, a protein found on the surface of multiple myeloma cells. The therapy involves engineering a patient's T cells to target and destroy these cancer cells, often providing substantial remission rates.
On the other hand, the Hemophilia A gene editing technology aims to offer curative treatments, potentially eliminating the need for ongoing factor replacement therapy. The shift away from this technology to Novo Nordisk, a company with a strong track record in endocrine and metabolic disorders, could accelerate its development. This transfer may ensure that patients benefit from this technology quicker than if it remained with 2seventy bio.
- Divestiture Supports Company Focus on Development and Commercialization of Abecma -
The program is based on the original research agreement, established in 2019, which focused on a gene editing therapy for people with Hemophilia A. 2seventy bio will focus exclusively on the commercialization and continued development of Abecma (idecabtagene vicleucel), its BCMA-targeted CAR T cell therapy for multiple myeloma, in collaboration with Bristol Myers Squibb (BMS).
“We are pleased to announce the completion of this APA with Novo Nordisk as we believe it will provide the appropriate resources for both the team and the science behind this important program,” said Chip Baird, CEO, 2seventy bio. “Novo Nordisk has been a valued partner over the past five years, and we are confident that under their leadership, the promise of developing a new treatment approach for patients living with Hemophilia A will continue to progress. We are extremely grateful to the 2seventy team members joining Novo Nordisk and thank them for their incredible work. In addition, the divestiture supports 2seventy’s exclusive focus on delivering Abecma to as many patients as possible.”
“I am excited that we are expanding our genome editing technology platforms at Novo Nordisk. We are devoted to developing therapies with a curative outlook, including our continued development of a next-generation in vivo genome editing program aiming to offer individuals living with Hemophilia A a lifetime free of factor replacement therapy,” said Karina Thorn, Novo Nordisk, Corporate Vice President, Global Nucleic Acid Therapies Research. “We have been working closely with 2seventy bio colleagues aligned with our collaboration and I am thrilled to welcome them to Novo Nordisk where we together will leverage the megaTAL technology for pioneering therapeutic applications.”
Under the terms of the agreement, 2seventy will potentially receive payments of up to
About 2seventy bio
Our name, 2seventy bio, reflects why we do what we do - TIME. Cancer rips time away, and our goal is to work at the maximum speed of translating human thought into action – 270 miles per hour – to give the people we serve more time. With a deep understanding of the human body’s immune response to tumor cells and how to translate cell therapies into practice, we’re applying this knowledge to deliver the first FDA-approved CAR T cell therapy for multiple myeloma to as many patients as possible. Importantly, we remain focused on accomplishing our mission by staying genuine and authentic to our “why” and keeping our people and culture top of mind every day.
For more information, visit www.2seventybio.com.
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2seventy bio is a trademark of 2seventy bio, Inc.
Cautionary Note Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of applicable laws and regulations. These statements include, but are not limited to: statements about the terms of the asset sale to Novo and our plans to focus on the commercialization and continued development of ABECMA. Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, the risk that ABECMA will not be as commercially successful as we may anticipate; the risk that our strategic realignment to focus on the development and commercialization of Abecma may not be as successful as anticipated, may fail to achieve the anticipated cost savings, and may cause disruptions in our business that could make it difficult to achieve our strategic objectives; and the risk that we are unable to manage our operating expenses or cash use for operations. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023 as supplemented and/or modified by our most recent Quarterly Report on Form 10-Q and any other filings that we have made or will make with the Securities and Exchange Commission in the future. All information in this press release is as of the date of the release, and 2seventy bio undertakes no duty to update this information unless required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240624605310/en/
Investors:
Vicki Eatwell, CFO
vicki.eatwell@2seventybio.com
Jenn Snyder
Jenn.snyder@2seventybio.com
Media:
Jenn Snyder
Jenn.snyder@2seventybio.com
Source: 2seventy bio, Inc.
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