TSVT - 2seventy Bio: Maximizing ABECMA's Potential To Fuel A Turnaround
2024-04-03 09:34:51 ET
Summary
- 2seventy bio is focusing on ABECMA, their CAR-T cell therapy for multiple myeloma, and expects label expansion approval.
- ABECMA has shown positive real-world evidence and has the potential for significant market growth.
- The company's financial position is strong, with a cash runway past 2027, and they anticipate a return to growth if the label expansion is approved.
2seventy bio ( TSVT ) has taken a new strategic route, narrowing its focus squarely on ABECMA, their CAR-T cell therapy developed in collaboration with Bristol Myers Squibb ( BMY ). The company's Q4 earnings report and corporate update covered how they were committed to unlocking the full potential of ABECMA relapsed or refractory multiple myeloma (RRMM). At that time, the company was looking ahead to a pivotal moment for ABECMA as the FDA’s Oncologic Drugs Advisory Committee (ODAC) was booked on March 15th , to analyze data backing the therapy’s supplemental Biologics License Application ((sBLA)) for the triple-class exposed RRMM setting. A favorable vote would bode well for the possibility that the FDA would approve ABECMA’s expanded label into the larger third-line setting and improve the therapy’s commercial prospects. The ODAC endorsed ABECMA by an 8 to 3 vote in favor of the CAR-T therapy’s profile. As a result, the market provided TSVT with a noticeable increase in trading volume, pushing the share price from around $4.50 a share to around $5.50 per share in the subsequent trading sessions. However, I still think the market’s reaction is still a bit underwhelming considering ABECMA’s potential label expansion should put the company back on a growth trajectory. Consequently, I am looking to take advantage of the favorable risk-reward the market is offering for TSVT at this time....
2seventy Bio: Maximizing ABECMA's Potential To Fuel A Turnaround