Yahoo Finance 2seventy bio Inc (TSVT) Q1 2024 Earnings Call Transcript Highlights: Strategic Shifts and ...
Revenue: Acme U.S. revenues reported by Bristol-Myers Squibb for $52 million.
Net Income: Share of collaboration loss of $1.2 million related to collaboration with BMS.
Cost Savings: Expected to achieve $150 million to $200 million in 2024 and 2025 respectively.
Net Cash Spend: Anticipated to stay within $80 million to $100 million for 2024.
Cash Runway: Expected to extend beyond 2027.
Break-even: Path to potential break-even by 2025 as Abecma returns to growth.
Release Date: May 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
2seventy bio Inc (NASDAQ:TSVT) successfully completed a strategic realignment focusing exclusively on Abecma, enhancing operational efficiency.
The company achieved FDA approval for Abecma in an earlier line setting, expanding the addressable patient population significantly.
2seventy bio Inc (NASDAQ:TSVT) reported a cash runway extending beyond 2027, indicating strong financial health and planning.
The company anticipates a return to growth in the second half of the year, driven by the expanded label and increased market opportunity for Abecma.
2seventy bio Inc (NASDAQ:TSVT) has maintained a high manufacturing success rate for Abecma, which is crucial for meeting patient needs and regulatory standards.
Negative Points
2seventy bio Inc (NASDAQ:TSVT) reported a collaboration loss of $1.2 million in the first quarter, reflecting challenges in the late-line setting.
Despite strategic realignment, the company had to implement a headcount reduction by an additional 14%, which could impact morale and operational capacity.
The market for multiple myeloma treatments is highly competitive, with significant competition from CAR-T therapies and bispecifics, posing challenges to gaining market share.
Revenue from Abecma has been flat over recent quarters, indicating challenges in growth and market penetration in the competitive landscape.
Concerns were raised about the durability of progression-free survival (PFS) for Abecma during the FDA panel, which could potentially impact physician confidence and adoption in earlier line settings.
Q & A Highlights
Q: How should we think about the backlog collaboration profitability going forward? Is there a threshold revenue above which the program will be consistently profitable given the flat sales over the last three quarters? A: (Chip Baird - CEO) We need to see a return to growth to see a consistent path towards our collaboration, revenue, and profitability. The profitability will improve as we increase revenues, helped by better capacity utilization on the manufacturing side. We believe in the path to profitability at levels we achieved before.
Q: How will the shift to suspension vector impact profitability? When should we expect that transition from adherent to suspension play out in the collaboration of profitability line? A: (Chip Baird - CEO) The approval for suspension helps from a capacity perspective and overall cost to treat a patient. The actual impact on costs will happen over time as we use remaining inherent vector and then make that crossover to suspension.
Q: Could you expand on the expected meaningful growth in the second half of the year? Could you also speak to the current dynamics of the launch and how much of it is competition from bispecifics versus supply constraints? A: (Chip Baird - CEO) We haven't specified the expected growth, but with the expanded label, the market opportunity is significant. We are not supply constrained and have enough capacity to meet our existing label. Regarding OpEx, spend in 2024 is about half of what 2023 was, and in 2025, it will be about a third of 2023's spend.
Q: Can you provide any early commentary on what you're seeing post label expansion with Karma three? A: (Chip Baird - CEO) It's early days, but we're engaging with the treating physician community to highlight the Abecma story and the data set. We're focused on articulating our product profile, which is different and improved.
Q: What are the current manufacturing success rates and vein-to-vein times for Abecma? Also, how might the durability of PFS impact Abecma uptake in earlier line settings? A: (Chip Baird - CEO) Manufacturing success rates are north of 90%, and turnaround time is just under 30 days. Regarding PFS, the panel focused on a study that showed a statistically significant difference in PFS compared to the standard of care. We believe the data supports a strong profile for Abecma.
Q: Can you speak to any utilization trends across treatment centers where Abecma is the only BCMA CAR-T available versus those that offer competitors as well? A: (Chip Baird - CEO) Utilization varies across centers. Major academic centers tend to drive a lot of the overall utilization. We are focused on expanding our footprint to more geographically remote places to make CAR-T therapy more accessible.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
