Bristol Myers Squibb (BMS) has announced the acquisition of 2seventy bio. The deal, disclosed late Monday, positions BMS to gain full control over the cancer cell therapy Abecma, a product that is navigating a challenging and competitive environment within the multiple myeloma market.

As part of the agreement, BMS will pay $5 in cash for each share of 2seventy, translating to a significant premium of 78.5% compared to the company’s closing stock price on Monday. This acquisition values 2seventy at approximately $286 million, or $102 million when factoring in the cash reserves that will be accessible to BMS post-acquisition. This financial arrangement starkly contrasts with the $38 per share valuation observed when 2seventy made its public debut just four years ago.

Abecma, an autologous cell therapy initially developed by Bluebird Bio, was entrusted to BMS through a partnership arrangement. In 2021, 2seventy was spun off as an independent entity, retaining key cancer cell therapies and considerable funds to bolster its development. The spinoff took place shortly after Abecma earned its distinction as the first CAR T-therapy sanctioned for multiple myeloma treatment. However, this first-mover advantage has rapidly diminished, especially with the recent FDA approval of Carvykti by Johnson & Johnson and Legend Biotech, which poses formidable competition in the same therapeutic niche.

The operational landscape for BMS and 2seventy has been further complicated by supply chain constraints that have hampered manufacturing processes for Abecma. Despite these challenges, the FDA’s decision to extend Abecma’s approval to third-line treatment of multiple myeloma expanded its market reach. Nonetheless, this announcement coincided with Carvykti’s approval for second-line use, exacerbating the competition between the two therapies. Although Abecma does not carry the movement disorder side effect associated with Carvykti, the pressure from new entrants in the market remains significant.

Emerging competition from other cell therapies is also anticipated. For instance, Arcellx has recently reported Phase 2 data indicating that its CAR T-therapy, anito-cel, possesses comparable efficacy to Carvykti with a safety profile that aligns with Abecma. The development of anito-cel, supported by Gilead Sciences, indicates a growing landscape of innovative therapies.

As it stands, BMS and 2seventy share the profits and losses associated with Abecma’s sales in the United States. Notably, Abecma generated $402 million in revenue in 2024, reflecting a 14% decline from the previous year. While global sales exhibited growth, the U.S. market—a critical arena for Abecma—saw declines that compelled BMS to record a $122 million impairment charge linked to reduced cash flow forecasts in light of the competitive climate.

Following a series of divestitures, including the sale of preclinical and early clinical cell therapy assets to Regeneron Pharmaceuticals, 2seventy emerged as a company focusing exclusively on the commercialization of Abecma. This strategic realignment has left Abecma as the sole remaining asset from its original spinoff from Bluebird Bio, which itself has faced hurdles in the commercialization of its gene therapies.

The acquisition is anticipated to finalize in the second quarter of this year, granting BMS unified control over Abecma and alleviating the obligations associated with profit-sharing. Analyst Daina Graybosch from Leerink Partners noted that the acquisition may reflect a measured confidence in Abecma’s potential for profitability, albeit amidst persisting uncertainties regarding future revenue streams.