Bristol Myers Squibb Acquires 2seventy bio for $286 Million to Strengthen Cancer Portfolio.
Bristol Myers Squibb (BMS) has announced its acquisition of 2seventy bio for $286 million, marking the end of the biotech company’s tumultuous journey as a cancer-focused cell therapy firm. This acquisition focuses on 2seventy bio's Abecma, a CAR-T therapy for treating multiple myeloma.
Background on 2seventy Bio and Abecma
Founded in May 2021, 2seventy bio emerged as a spinout from bluebird bio, retaining the Abecma therapy as its sole focus. Abecma, approved in March 2021, became the industry’s first BCMA-targeted CAR-T treatment for relapsed or refractory multiple myeloma. This approval followed BMS’s successful launch of its first CAR-T therapy, Breyanzi, for large B-cell lymphoma.
Since then, BMS has successfully expanded Abecma’s usage, securing FDA approval in April 2024 for its use in patients who had undergone at least two prior lines of therapy. In 2024, Abecma brought in $406 million in worldwide sales, with $43 million allocated to 2seventy bio under a profit-sharing agreement.
Challenges Faced by 2seventy Bio
Despite the promising start, 2seventy bio faced significant challenges over the years. In 2024, Chip Baird, the CEO of 2seventy bio, admitted that the company was “tantalizingly close” to reaching cash break-even after struggling through layoffs, regulatory hurdles, and pipeline reorganizations. In January 2024, 2seventy bio sold off its pipeline to Regeneron for just $5 million.
Strategic Reasons for the Acquisition
BMS's decision to acquire 2seventy bio is aligned with its broader strategy to strengthen its cancer treatment portfolio. With a focus on cutting future profit-sharing costs for Abecma, this acquisition allows BMS to leverage its extensive resources and experience in cell therapies.
The deal is a part of BMS’s recent efforts to reduce its expenditure, including its strategic productivity initiative aimed at cutting costs by $1.5 billion through 2025. This initiative led to around 2,200 layoffs and the optimization of management layers. The acquisition will also help BMS offset the upcoming loss of exclusivity for some of its top-selling assets, such as Yervoy and Opdivo, in the coming years.
The Deal Terms and Timeline
Under the terms of the deal, BMS will purchase all outstanding shares of 2seventy bio at $5 per share, an 88% premium over the company’s closing price on the previous Friday. The acquisition is expected to close in the second quarter of 2025, contingent on customary conditions, including antitrust clearances and shareholder approval.
2seventy bio’s Board of Directors has unanimously recommended that shareholders approve the buyout. Goldman Sachs & Co. LLC is acting as the exclusive financial advisor for 2seventy bio, while Goodwin Procter LLP is providing legal counsel.
The BMS-2seventy bio deal is expected to improve BMS’s strategic position, particularly in the competitive world of cell therapy treatments for cancer. As BMS prepares for the future, it continues to focus on reducing costs and expanding its cancer treatment offerings through strategic acquisitions like this one.
2seventy bio, Inc. is a biotechnology company focused on developing cell therapies for cancer treatment. Spun out from bluebird bio in 2021, it is primarily known for its collaboration with Bristol Myers Squibb (BMS) on the CAR-T therapy Abecma, designed to treat relapsed or refractory multiple myeloma. The company has faced challenges in recent years, including restructuring and regulatory hurdles. 2seventy bio’s business strategy has been centered on the development of cutting-edge immunotherapies. Despite struggles, the company has made significant strides in expanding treatment options for cancer patients and continues to explore potential therapies for other diseases.
Bristol Myers Squibb (BMS) is a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines to treat serious diseases. Headquartered in the U.S., BMS specializes in oncology, cardiovascular, immunology, and fibrosis.
With over 130 years of history, BMS is a leader in immuno-oncology, pioneering therapies for cancer treatment. The company is dedicated to scientific innovation and collaboration, aiming to improve patient outcomes globally.
BMS is committed to a patient-first approach, ensuring access to life-changing treatments through a diverse and inclusive workforce.
