2seventy bio (TSVT) 7 Aug 24 2024 Q2 Earnings call transcript

In the recent 2Seventy Bio's Q2 2024 earnings call, the company provided updates on its strategic decisions and financial performance. The call, led by Chip Baird, CEO, and Vicki Eatwell, CFO, highlighted the company's focus on ABECMA and its commercial success in the U.S. market.

Strategic Pivots

The call began with a discussion of the strategic decision to focus exclusively on ABECMA in the commercial business. This decision, while challenging, has started to show positive results, with a reduction in cost structure and a strengthened balance sheet. The sale of the oncology R&D business to Regeneron and the hemophilia A program and related megaTAL technology to Novo Nordisk have been crucial in streamlining the business and enabling a more focused approach on ABECMA.

Financial Performance

Vicki Eatwell reported the financial results for Q2 2024, with collaboration revenue of $4.4 million and net income of $24.9 million. The company has achieved profitability for the quarter, and expects a revised net cash spend range of $40 million to $60 million in 2024. These financial improvements are a testament to the company's successful strategic pivots and cost-cutting measures.

ABECMA's Performance

The call also emphasized the positive impact of the FDA's approval to treat earlier line patients with ABECMA. The U.S. market has shown modest growth, with an increase in patients undergoing apheresis and a return of sites that had previously stopped prescribing ABECMA. The commercial and launch messaging on ABECMA's efficacy and safety profile has been well received by providers, positioning ABECMA as a competitive therapy in the earlier line setting.

Looking Ahead

The company remains optimistic about ABECMA's potential to make a meaningful impact on patients with myeloma. With a focus on delivering more time for every patient, 2Seventy Bio continues to work closely with BMS to execute the third line launch of ABECMA. The company aims to achieve breakeven and profitability by 2025, setting a positive outlook for its future financial performance.

In conclusion, 2Seventy Bio's Q2 2024 earnings call underscores the company's strategic pivots, financial improvements, and positive outlook for ABECMA's commercial success. These developments highlight the company's commitment to unlocking value with ABECMA and positioning it as a competitive therapy in the myeloma treatment landscape.