2seventy Bio price target raised to $12 from $9 at Citi

Citi raised the firm’s price target on 2seventy Bio to $12 from $9 and keeps a Buy rating on the shares after the FDA approved Abecma for 3L+ multiple myeloma patients that are triple class exposed. This follows the positive ODAC vote last month, where the majority of panelists agreed that more therapeutic options were needed in MM earlier lines since patients are routinely treated with triple and quad regimens upfront, the firm said in a research note on Friday. Further, most panelists agreed the PFS response and safety profile were acceptable for earlier lines. Despite the approval, the share reaction was muted on Friday as the focus for TSVT will now shift entirely to competitive concerns. Citi acknowledges the competitive risk, but continues to believe Abecma will be utilized given expansion of the eligible patient population in 3L+ vs. 5L+, continued activation of Abecma treatment centers, and increased investment in manufacturing capacity and success rate.