2Seventy Bio, trying to ‘outmaneuver cancer,’ soars after acquisition by BMS

Shares of 2Seventy Bio, a small-cap maker of targeted cancer therapies, skyrocketed almost 80% yesterday, March 11, after the company announced that pharmaceutical giant Bristol Myers Squibb would acquire it at an 88% premium.

Yesterday, 2Seventy Bio soared 77% on the Nasdaq to $4.95 per share, its highest close since November 7, when it finished at $5.00 per share.

After the closing bell on Monday, 2Seventy Bio announced it would be acquired by Bristol Myers Squibb, the pharmaceutical giant with a market capitalization of about $125 billion on the New York Stock Exchange. The deal values 2Seventy Bio at around $286 million, or $5 per share — 88% above the market price on March 7, the last business day before the acquisition was announced. According to the press release, the transaction is expected to close in the second quarter.

Following the news, Leerink Partners slashed its target price for 2Seventy Bio by almost 45% to $5 per share and changed its recommendation from “outperform” (equivalent to a “buy”) to “market perform” (“hold”), as reported by MarketScreener. According to MarketWatch, out of the four Wall Street analysts who cover 2Seventy Bio, three rate it a “hold” and one has it as a “sell.” The stock is up more than 68% since the start of the year but up only 8% over the last 12 months.

Spun off in 2021 from Bluebird Bio, 2Seventy Bio focuses on cancer cell therapies. Unlike other treatments, this method stimulates a patient's own cells to attack tumors.

The company’s name is inspired by the maximum speed at which human thought translates into action — 270 miles per hour (about 434 km/h). “At 2Seventy Bio, we think in the language of time. It’s about time we endeavor to outmaneuver cancer so the people we serve can have the chance for… living their best lives,” the company states on its website.

Until recently, 2Seventy Bio had been working on cell therapies for several types of cancer, including B-cell non-Hodgkin lymphoma and acute myeloid leukemia. However, in 2024, it started focusing solely on Abecma, a cell therapy for multiple myeloma (a type of leukemia). As part of this new strategy, the company sold most of its remaining pipeline to its partner, the pharmaceutical company Regeneron, and later signed an agreement with Denmark's Novo Nordisk to sell its hemophilia A program and rights to its in vivo gene-editing technology outside of oncology.

The deal announced on Monday “represents the culmination of the journey for 2Seventy Bio,” company CEO Chip Baird was quoted as saying in the press release. Bristol Myers Squibb will now take over the commercialization of Abecma, ensuring that “this important therapy is delivered to patients who need it.”