2Seventy Bio (TSVT) Q2 2024 earnings summary

Executive summary

• Strategic realignment completed, focusing exclusively on Abecma after divesting oncology, autoimmune, and Hemophilia A programs to Regeneron and Novo Nordisk, resulting in a streamlined cost structure and strengthened financial position.

• FDA approved Abecma for relapsed/refractory multiple myeloma after two or more prior therapies in April 2024, supporting renewed growth.

• Significant workforce reductions: 40% in September 2023 and an additional 14% in January 2024, with 62% of remaining staff transitioning to Regeneron.

• Positive early impact from the strategic pivot, with signs of renewed growth for Abecma and increased demand reflected in double-digit growth in apheresis procedures.

• Net income of $24.9 million for Q2 2024, compared to a net loss of $42.1 million in Q2 2023, driven by one-time gains from asset sales.

Financial highlights

• U.S. Abecma revenues for Q2 2024 were $54 million, with collaborative arrangement revenue of $4.4 million from the BMS partnership.

• Total Q2 2024 revenues were $9.0 million, down from $36.0 million in Q2 2023; six-month revenues were $21.4 million, down from $77.7 million year-over-year.

• Achieved $28 million (43%) reduction in GAAP operating expenses versus Q1 2024, and $48 million (57%) reduction year-over-year; Q2 2024 operating expenses were $36.0 million, down from $84.0 million in Q2 2023.

• Recognized a $48.0 million one-time gain on sale to Novo Nordisk and a $5.0 million one-time loss on assets held for sale to Regeneron.

• Cash, cash equivalents, and marketable securities totaled $201.9 million as of June 30, 2024.

Outlook and guidance

• Lowered net cash spend guidance for 2024 to $40–$60 million; cash runway expected for at least twelve months and projected beyond 2027.

• Expects continued growth for Abecma in the second half of 2024, with increased apheresis translating to higher Q3 revenue.

• Path to cash flow breakeven and profitability as soon as 2025, with breakeven achievable at less than $400 million in total U.S. sales.

• May seek additional funding through equity, debt, or partnerships if capital is used faster than planned.

• No specific revenue guidance for Abecma provided yet; more details expected after a few quarters of third-line launch.