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2seventy bio (TSVT)
NASDAQ:TSVT
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2seventy bio
(NASDAQ:TSVT)
51Neutral
Positive Factors
Acquisition Premium
The transaction price implies a ~80% premium to TSVT's closing price of $2.80/share.
Cash Position
2Seventy ended the quarter with $192 million in cash, cash equivalents, and marketable securities and reiterated a cash runway beyond 2027 and a path to profitability by 2025.
Negative Factors
Competitive Pressure
Market uncertainty exists with Kite and Arcellx's expected launch of a third BCMA CAR-T, threatening Abecma's niche.
Revenue Challenges
2seventy's top-line revenue fell short of expectations, reflecting Abecma's gross profit.
2seventy bio (TSVT) vs. S&P 500 (SPY)
Market Cap
$259.07M
Dividend YieldN/A
Average Volume (3M)1.82M
Price to Earnings (P/E)―
Beta (1Y)2.05
Revenue Growth-62.28%
EPS Growth75.12%
CountryUS
Employees65
SectorHealthcare
Sector Strength62
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.12
Shares Outstanding52,338,383
10 Day Avg. Volume762,395
30 Day Avg. Volume1,821,755
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.60
Price to Cash Flow (P/CF)-6.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.33Price Target Upside27.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
2seventy bio Business Overview & Revenue Model
Company Description2seventy bio (TSVT) is a biotechnology company focused on the development and commercialization of innovative cell therapies for the treatment of cancer. Operating in the biopharmaceutical sector, 2seventy bio is dedicated to advancing its pipeline of autologous and allogeneic therapies to improve the lives of patients with serious and life-threatening oncologic diseases.
How the Company Makes Money2seventy bio primarily generates revenue through the development and commercialization of its pipeline of cell therapies. The company seeks to monetize its therapies via partnerships and collaborations with other pharmaceutical companies and institutions, which can involve upfront payments, milestone payments, and potential royalties from commercial sales. Additionally, 2seventy bio may engage in licensing agreements that allow other companies to utilize its proprietary technologies in exchange for financial compensation. The company's earnings are significantly influenced by the successful research, development, and regulatory approval of its products, as well as the strategic partnerships it forms within the biopharmaceutical industry.
2seventy bio Financial Statement Overview
Summary
2seventy bio is facing significant financial challenges, marked by declining revenues, substantial losses, and high leverage. The company's profitability metrics are under pressure, and cash flow issues persist, indicating the need for strategic realignment and improved financial management to stabilize operations.Income Statement
The company has experienced declining revenues over the reported periods, with a sharp drop from 2020 to 2024. The gross profit margin remains positive, but the net profit margin is significantly negative, indicating substantial losses. Despite efforts to manage costs, EBIT and EBITDA margins are also deeply negative, reflecting challenges in achieving operational efficiency.35
Negative
Balance Sheet
The company exhibits a high debt-to-equity ratio, indicating heavy reliance on debt financing. Return on Equity (ROE) has been negative, driven by consistent net losses. Although stockholders' equity has declined, the equity ratio shows a relatively stable position, suggesting some level of asset-backed security.40
Negative
Cash Flow
Operating cash flow is consistently negative, demonstrating struggles in generating cash from operations. The free cash flow to net income ratio is unfavorable, and the free cash flow growth rate is negative, highlighting cash management challenges. Although investing cash flow has been positive recently, it is overshadowed by the negative operating performance.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 37.86M | 100.39M | 91.50M | 54.52M | 248.12M | Gross Profit |
| 37.86M | 83.47M | 65.28M | 41.93M | 242.73M | EBIT |
| -115.43M | -216.70M | -262.91M | -313.51M | -144.64M | EBITDA |
| -98.45M | -206.42M | -251.38M | -297.16M | -131.45M | Net Income Common Stockholders |
| -57.25M | -217.57M | -254.14M | -276.21M | -138.17M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 174.75M | 216.99M | 266.27M | 362.18M | -127.60M | Total Assets |
| 479.51M | 565.43M | 656.66M | 759.67M | 312.62M | Total Debt |
| 243.72M | 256.67M | 270.17M | 282.21M | 127.60M | Net Debt |
| 172.47M | 181.72M | 199.14M | 151.80M | 255.21M | Total Liabilities |
| 268.70M | 310.13M | 346.20M | 399.85M | 237.99M | Stockholders Equity |
| 210.81M | 255.30M | 310.47M | 359.82M | 74.63M |
| Cash Flow | Free Cash Flow | |||
| -85.70M | -180.72M | -259.98M | -226.61M | -90.05M | Operating Cash Flow |
| -85.00M | -166.86M | -237.13M | -207.03M | -67.79M | Investing Cash Flow |
| 80.76M | 43.86M | 11.70M | 15.41M | -22.26M | Financing Cash Flow |
| 417.00K | 127.39M | 166.23M | 354.89M | 90.05M |
2seventy bio Technical Analysis
Positive
4.96
Price Trends
3.43
Positive
3.38
Positive
3.95
Positive
Market Momentum
0.52
Positive
80.34
Negative
11.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSVT, the sentiment is Positive. The current price of 4.96 is above the 20-day moving average (MA) of 4.73, above the 50-day MA of 3.43, and above the 200-day MA of 3.95, indicating a bullish trend. The MACD of 0.52 indicates Positive momentum. The RSI at 80.34 is Negative, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSVT.
2seventy bio Risk Analysis
2seventy bio disclosed 65 risk factors in its most recent earnings report. 2seventy bio reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
2seventy bio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.96B | 31.06 | 8.05% | ― | 17.35% | 151.40% | |
51 Neutral | $259.07M | ― | -24.56% | ― | -62.28% | 75.12% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
46 Neutral | $2.84B | ― | -19.20% | ― | -89.95% | -123.71% | |
42 Neutral | $128.11M | ― | -187.83% | ― | -67.20% | 64.66% | |
41 Neutral | $688.91M | ― | -54.00% | ― | 59.55% | 3.09% | |
36 Underperform | $51.40M | ― | -295.35% | ― | 184.12% | 31.92% |
* Healthcare Sector Average
Performance Comparison
TSVT
2seventy bio
4.97
-0.04
-0.80%
BMRN
BioMarin Pharmaceutical
67.48
-19.41
-22.34%
SGMO
Sangamo Biosciences
0.62
0.05
8.77%
BLUE
Bluebird Bio
4.89
-19.71
-80.12%
NTLA
Intellia Therapeutics
6.89
-18.08
-72.41%
CRSP
Crispr Therapeutics AG
32.66
-32.40
-49.80%
2seventy bio Earnings Call Summary
Earnings Call Date: Mar 25, 2025 | % Change Since: 0.20% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in ABECMA revenues and significant cost reductions, indicating positive progress towards breakeven. Despite seasonal challenges and market competition, the company remains optimistic about future growth and operational efficiency.Highlights
Significant Revenue Growth for ABECMA
ABECMA U.S. revenues grew 42% over the prior quarter, reflecting ongoing expansion in the third-line setting.
Streamlined Operations and Cost Reduction
The company reduced its burn rate to approximately $10 million this quarter and achieved a 24% reduction in GAAP operating expenses versus the prior quarter.
Successful Strategic Transactions
Sale of oncology and autoimmune R&D pipeline to Regeneron and the hemophilia A program to Novo Nordisk for $40 million.
Improved Manufacturing Success Rate
Achieved a manufacturing success rate north of 95%, contributing positively to margins.
Lowlights
Seasonal Impact on ABECMA Sales
Fourth quarter ABECMA revenues expected to be impacted by competition and a reduction in CAR-T infusion schedules during the U.S. holiday season.
Continued Uncertainty in Market Position
Acknowledgement of a dynamic and competitive multiple myeloma market, requiring continuous efforts to maintain and grow ABECMA's market share.
Company Guidance
During the Q3 2024 earnings call for 2seventy bio, significant guidance was provided regarding the company's focus and financial outlook. The executives highlighted a strategic shift towards prioritizing ABECMA, with U.S. revenues reaching $77 million in the third quarter, reflecting a 42% growth over the previous quarter. They projected total U.S. ABECMA revenues for 2024 to be in the range of $240 million to $250 million, noting a likely reduction in the fourth quarter due to seasonal factors. The company's burn rate was reduced to approximately $10 million this quarter, with operating expenses seeing a 24% reduction compared to the prior quarter. They also reported collaborative arrangement revenue of approximately $11 million with BMS. The company aims to achieve breakeven operations potentially by 2025, revising the breakeven sales point to closer to $300 million, down from $400 million initially projected. Looking ahead, the focus will be on competing commercially for ABECMA and optimizing cost structures to enhance operating margins.2seventy bio Corporate Events
Business Operations and StrategyFinancial Disclosures
2seventy bio Reports Strong Q3 with Abecma Growth
Positive
Nov 12, 2024
2seventy bio reported impressive third-quarter results with a 42% increase in Abecma sales, driven by expanding its use in early treatment lines for multiple myeloma. The company achieved significant cost reductions and ended the quarter with a net loss of $10 million, while maintaining a strong cash position of $192 million, expected to sustain them beyond 2027. 2seventy bio remains focused on Abecma’s safety and efficacy, aiming to expand its reach in the competitive multiple myeloma market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.