2seventy Bio Stock Surges as Regeneron Acquires R&D Assets

Investors are reveling in a frenzy as 2seventy Bio (NASDAQ:TSVT) witnesses a staggering +10.3% surge in premarket trading on Tuesday. The hullabaloo is sparked by the groundbreaking announcement from Regeneron Pharmaceuticals (NASDAQ:REGN). The pharmaceutical giant has unfurled plans to establish Regeneron Cell Medicines, a novel R&D division blooming with assets procured from the cradle of innovation, 2seventy Bio.

Regeneron has sealed a deal to snatch complete development and commercialization rights to 2seventy’s trove of groundbreaking immune cell therapies. This substantial acquisition includes the mantle of 2seventy’s pioneering discovery and clinical manufacturing capabilities. This colossal maneuver is a seismic shift in the biopharmaceutical terrain, signifying a radical leap forward in the annals of medical breakthroughs.

The transitioning will encompass an estimated 150 adept 2seventy Bio employees who are instrumental in fortifying the acquired programs. They will seamlessly assimilate into the bosom of Regeneron Cell Medicines. It is poised to metamorphose into a bastion of ingenuity focused on propelling forward the frontiers of cell therapies and amalgamating treatments with Regeneron’s exclusive antibodies and bispecifics in the domain of oncology and immunology.

Regeneron (REGN) will effectively shoulder the ongoing program, infrastructure, and personnel costs tied to the acquired development programs. Furthermore, it will shell out a princely $5M upfront and a solitary milestone payment to 2seventy Bio (TSVT) upon the maiden significant market approval of the premier commercialized product. As a testament to its generous acknowledgment, 2seventy Bio will also be entitled to a low single-digit percentage royalty on the revenues spawned by products commercialized by Regeneron. This lengthy transaction is anticipated to culminate in the first half of 2024, with Philip Gregory, the formidable chief scientific officer of 2seventy Bio, at the helm of Regeneron Cell Medicines.