2seventy to Sell R&D Pipeline to Regeneron, Focus on Abecma

By Colin Kellaher

2seventy bio has agreed to sell its research-and-development pipeline to Regeneron Pharmaceuticals as part of a pivot by the biotechnology company to focus exclusively on the commercialization and development of its Abecma gene therapy with partner Bristol Myers Squibb.

2seventy on Tuesday said it expects the realignment will result in savings of around $150 million this year and $200 million in 2025 while extending its cash runway beyond 2027.

Regeneron said it will assume full development and commercialization rights for 2seventy's preclinical and clinical-stage cell-therapy pipeline, adding that it is forming a new unit dubbed Regeneron Cell Medicines to advance cell therapies and combination approaches in oncology and immunology.

Tarrytown, N.Y., biotechnology company Regeneron said it will make a $5 million upfront payment to 2seventy, along with a single milestone payment for the first major market product approval and a low-single-digit percent royalty on revenue generated by the products.

The deal is slated to close in the first half of the year.

2seventy, based in Cambridge, Mass., said about 160 employees will move to Regeneron, and that it will reduce its remaining staff to about 65 to better align with its reshaped focus and reduce expenses overall. The company currently has about 280 employees, according to data from FactSet.

2seventy said Chip Baird, its chief operating officer, will become chief executive upon closing of the transaction with Regeneron, while Vicki Eatwell, currently senior vice president of finance, will become chief financial officer.

Write to Colin Kellaher at colin.kellaher@wsj.com

Corrections & Amplifications

This article was corrected at 8:19 a.m. ET because it incorrectly said 2seventy bio has about 425 employees. The company has about 280 employees.

(END) Dow Jones Newswires

January 30, 2024 07:38 ET (12:38 GMT)

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