2Seventy Bio (TSVT) Q3 2024 earnings summary

Executive summary

• Completed sale of oncology and autoimmune R&D pipeline to Regeneron and hemophilia A program to Novo Nordisk for $40 million, focusing exclusively on Abecma and discontinuing other programs.

• Achieved FDA approval for Abecma in the third-line setting, expanding patient access, and discontinued enrollment in the KarMMa-9 study to optimize cost structure.

• Streamlined operations, reducing headcount from 277 to 70, with most R&D staff transitioning to Regeneron.

• Ended Q3 with $192 million in cash, cash equivalents, and marketable securities, with cash runway projected beyond 2027.

• Discontinuation of KarMMa-9 study is expected to save over $80 million in costs over several years.

Financial highlights

• Abecma U.S. revenues reached $77 million in Q3 2024, up 42% from the prior quarter, with total Q3 revenue at $13.5 million, up from $12.0 million in Q3 2023.

• Collaborative arrangement revenue for Q3 was approximately $11 million.

• Q3 net loss was $9.9 million, a significant improvement from $71.6 million in Q3 2023; nine-month net loss was $37.7 million, down from $160.7 million year-over-year.

• GAAP operating expenses reduced by $10 million (24%) sequentially and $140 million (52%) year-to-date versus last year.

• Cash, cash equivalents, and marketable securities totaled $192 million as of September 30, 2024.

Outlook and guidance

• Abecma full-year 2024 U.S. revenue expected to be $240–$250 million, with Q4 impacted by competition and holiday seasonality.

• Break-even sales point revised downward to approximately $300 million in U.S. Abecma sales.

• Net cash spend for 2024 reiterated at $40–60 million, with cash runway expected to extend beyond 2027.

• Operating expenses expected to continue declining in 2025.

• Current liquidity is expected to fund planned operations for at least the next twelve months.