2seventy bio will be reducing its workforce by 40% and firing 176 employees in an effort to cut costs.
One of the main reasons cited for restructuring was the decreased 2023 sales forecasts of Abecma (idecabtagene vicleucel), the company’s only approved therapy. The chimeric antigen receptor (CAR) T-cell therapy, developed in partnership with Bristol Myers Squibb, is expected to generate $470m-$570m less in sales than previously projected, as per 2seventy bio.
Still, the company was quick to note that it remains hopeful Abecma sales may improve, considering the expected label expansion for a third indication. The therapy is currently under review with the US Food and Drug Administration (FDA) for the treatment of triple-class exposed relapsed and/or refractory multiple myeloma, with the Prescription Drug User Fee Act (PDUFA) date set for 16 December.
Multiple pharma companies have announced staff layoffs this year following FDA rejections and as a general cash reduction measure due to rising inflation. 2seventy bio expects the layoffs to reduce the cash burden by at least $130m over the next two years.
The company expects the one-time restructuring costs to total approximately $9m and expects its remaining cash reserves to last into 2026. Despite restructuring news, the company’s stock was up 6% in pre-market trading.
In addition to the workforce cuts, 2seventy bio is also limiting funding to two of its Phase I clinical programs, namely bbT369 for treating relapsed and/or refractory B cell non-Hodgkin lymphoma and SC-DARIC-33 for treating acute myeloid leukaemia.
The company also announced the expansion of its partnership agreement with JW Therapeutics to include two CAR-T cell therapies for development. This builds on the previous collaboration with JW Therapeutics and Regeneron to develop T cell-based immunotherapies.
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