BMS snaps up Abecma partner 2seventy bio in $286M all-cash deal
Deal Overview
- Bristol Myers Squibb (BMS) is acquiring 2seventy bio for $286 million in an all-cash deal14.
- BMS will pay $5.00 per share for 2seventy bio, representing an 88% premium over 2seventy's closing price on March 7, 202547.
- The deal is expected to close in the second quarter of 2025, subject to customary closing conditions47.
Strategic Rationale
- The acquisition gives BMS full control over Abecma, a CAR-T cell therapy for multiple myeloma that the two companies had been partnering on47.
- It ends the profit-sharing agreement between BMS and 2seventy for Abecma, which generated $406 million in sales for BMS in 202412.
- BMS aims to improve efficiencies and ensure business continuity for Abecma11.
Background on 2seventy bio
- 2seventy bio was spun out from Bluebird Bio in 2021, taking the Abecma partnership with BMS12.
- The company had recently narrowed its focus exclusively to Abecma after divesting other pipeline assets7.
- 2seventy had been struggling financially, with net losses of $217.57 million in 20237.
Industry Context
- The deal comes as BMS faces patent expirations on key products like Opdivo and Eliquis in the coming years12.
- It aligns with BMS's recent cost-cutting initiatives and pledge to pursue strategic deals12.
- Abecma faces competition from J&J/Legend's Carvykti and a potential new entrant from Gilead/Arcellx11.
In summary, this acquisition allows BMS to consolidate control over Abecma as it seeks to bolster its portfolio ahead of patent cliffs, while providing an exit for the struggling 2seventy bio.
Sources:
1. https://www.precisionmedicineonline.com/precision-oncology/bristol-myers-squibb-acquire-2seventy-bio-286m
4. https://www.biopharmadive.com/news/2seventy-bio-bristol-myers-deal-abecma-bluebird/742142/
7. https://www.genengnews.com/topics/cancer/bms-to-acquire-abecma-partner-2seventy-bio-for-286m/
11. https://www.fiercepharma.com/pharma/bristol-myers-buys-cell-therapy-partner-2seventy-286m-taking-full-control-abecma
12. https://www.biospace.com/business/bms-buys-abecma-partner-2seventy-for-286m-ending-cost-sharing-agreement