2seventy bio (TSVT) Q3 Earnings call transcript Nov 12, 2024
1min read In a recent earnings call, 2seventy Bio, a biotechnology company, provided insights into its third quarter 2024 financial results, highlighting significant achievements and future plans. Morgan Adams Shields, the executive from Corporate Communications, led the call, with Chip Baird, Chief Executive Officer, and Vicki Eatwell, Chief Financial Officer, providing detailed updates on the company's financial performance and strategic directions.
Streamlining the Company and Focusing on ABECMA
2seventy Bio has undergone significant changes this year, including the sale of its oncology and autoimmune R&D pipeline to Regeneron and the hemophilia A program to Novo Nordisk. These transactions have helped streamline the company, allowing it to focus exclusively on ABECMA, its marketed CD19 CAR-T therapy for multiple myeloma. This strategic move has resulted in a more focused business model and a significant return to growth for ABECMA, with third quarter U.S. revenues growing by 42% over the prior quarter. The company is now aiming for breakeven operations, a major milestone that creates strategic optionality for the future.
Financial Performance and Future Outlook
The third quarter of 2024 was a strong one for 2seventy Bio, with U.S. ABECMA revenues reaching $77 million, reflecting ongoing expansion in the third-line setting. The company expects U.S. ABECMA revenues to be approximately $240 million to $250 million for 2024, with a focus on optimizing the cost structure of ABECMA to increase operating margins and cash flow. The company's financial discipline, as shown by the discontinuation of the KarMMa-9 study, is a clear indication of its commitment to improving the profitability of ABECMA.
Competition and Market Dynamics
2seventy Bio acknowledges the dynamic and competitive multiple myeloma market, which continues to evolve. The company's focus on competing commercially and optimizing the cost structure of ABECMA is a strategic move to maintain its position in the market. ABECMA's differentiated safety profile and competitive efficacy, particularly when patients receive effective bridging therapy prior to treatment, position it well in the growing CAR-T market for multiple myeloma.
Looking Ahead
2seventy Bio is one step closer to breakeven operations, potentially as soon as 2025. The company's strategic focus on ABECMA, financial discipline, and optimism towards achieving breakeven create a positive outlook for the future. The management team's commitment to delivering for patients and creating value for shareholders remains a guiding principle as they navigate the competitive landscape and continue to make meaningful progress towards breakeven operations.
In conclusion, 2seventy Bio's third quarter 2024 earnings call painted a picture of a company navigating challenges and achieving growth. With a focus on ABECMA, strategic financial decisions, and a commitment to delivering value for patients and shareholders, 2seventy Bio is well-positioned to continue making a meaningful impact in the multiple myeloma market.