Bristol Myers Squibb is acquiring 2seventy bio, a deal that gives the pharmaceutical giant full control over the partnered cancer cell therapy Abecma as that product faces headwinds in a competitive multiple myeloma market.

According to deal terms announced Monday night, BMS will pay $5 in cash for each share of 2seventy. That represents a 78.5% premium to 2seventy’s closing stock price on Monday, but it’s a far cry from the company’s $38 per share price when it debuted four years ago. The deal values 2seventy at $286 million, or $102 million taking into account the cash reserves it will bring to BMS.

Abecma is an autologous cell therapy that was initially developed by Bluebird Bio and was later partnered with BMS. In 2021, 2seventy spun out as a standalone, publicly traded company, taking Bluebird’s cancer cell therapies along with $442 million to support them. The spinout happened months after Abecma became the first CAR T-therapy approved for treating multiple myeloma. But that first mover advantage was short lived, as partners Johnson & Johnson and Legend Biotech won FDA approval in 2023 for Carvykti, a CAR T-therapy for multiple myeloma. Meanwhile, supply chain constraints presented BMS and 2seventy with manufacturing challenges for Abecma.

Last year, the FDA expanded Abecma’s approval to include third-line treatment of multiple myeloma, which expands the market for the product. But that decision was made alongside the expanded approval of Carvykti to second-line use in multiple myeloma. Despite this advantage, Carvykti is associated with a movement disorder side effect that has not been reported with Abecma.

More cell therapy competition could be coming. Arcellx has Phase 2 data showing its CAR T-therapy, anito-cel, has efficacy comparable to Carvykti and a safety profile comparable to Abecma. Anito-cell is being developed under a partnership partnered with Gilead Sciences, which brings its cell therapy experience and manufacturing infrastructure.

BMS and 2seventy share equally in the profits and losses from sales of Abecma in the U.S. The product generated $402 million in revenue in 2024, a 14% decline from sales in the prior year, according to BMS’s annual report. While sales around the world are growing, in the U.S. — the largest market for Abecma — sales declined. BMS’s profit-sharing cost last year was $43 million. In the fourth quarter of 2024, BMS recorded a $122 million impairment charge for Abecma “primarily resulting from a reduced cash flow forecast due to the evolving competitive landscape,” the annual report stated. BMS said this charge represented a full write-down of the asset.

Abecma is the lone remaining asset from 2seventy’s spinout from Bluebird. Last year, 2seventy sold its preclinical and early clinical cell therapy pipeline to Regeneron Pharmaceuticals, then sold hemophilia assets to Novo Nordisk. Those transactions followed a corporate restructuring that cut R&D expenses and focused the business on commercialization of Abecma. Meanwhile, Bluebird has struggled to commercialize its three FDA-approved gene therapies. Last month, Bluebird agreed to an acquisition that takes the cash-strapped company private.

BMS’s 2seventy acquisition is expected to close in the second quarter of this year. In a note sent to investors Tuesday, Leerink Partners analyst Daina Graybosch wrote that the deal signals modest confidence in the near-term profit potential of Abecma. Also, acquiring the biotech spares BMS the obligation of sharing profits related to the cell therapy. Graybosch noted that 2seventy CEO Chip Baird stated at an investor conference last week that his company’s move toward profitability makes it attractive to larger companies. But Graybosch said it’s unlikely another company will step in with another offer.

“While we agree that Abecma will build in profitability this year, we also believe the uncertainty in future revenue streams would be an overhang for any larger company considering an acquisition,” she said. “We see little to no value in 2seventy for any company looking to build a cell therapy business, as 2seventy already divested its R&D assets to Regeneron and Novo Nordisk, and [Bristol Myers Squibb] manufactures and commercializes Abecma.”

Photo by Bristol Myers Squibb