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CAMBRIDGE, Mass. - In a significant move within the biopharmaceutical sector, Bristol Myers Squibb (NYSE: BMY), a pharmaceutical giant with a market capitalization of $128 billion and strong financial health according to InvestingPro, has entered into a definitive agreement to acquire all outstanding shares of 2seventy bio, Inc. (Nasdaq: TSVT) for $5.00 per share in an all-cash transaction. The total equity value of the acquisition is approximately $286 million, or $102 million net of estimated cash.
The acquisition price represents an 88% premium over 2seventy bio’s closing price on Tuesday last week. The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions, including the tender of a majority of the outstanding shares of 2seventy bio’s common stock and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. BMY’s stock is currently trading near its 52-week high of $63.16, showing strong momentum with a 33% return over the past six months.
2seventy bio’s Board of Directors unanimously recommends that stockholders tender their shares in the offer. Certain stockholders owning approximately 5.3% of the outstanding shares have already entered into tender and support agreements.
The acquisition is seen as the culmination of 2seventy bio’s journey, which has been focusing on maximizing the value of Abecma, a therapy for multiple myeloma. 2seventy’s CEO Chip Baird expressed confidence that Bristol Myers Squibb’s experience and resources will ensure that Abecma continues to reach patients in need.
Following the completion of the transaction, 2seventy bio’s common stock will no longer be listed on Nasdaq. Goldman Sachs & Co. LLC is serving as the exclusive financial advisor to 2seventy bio, with Goodwin Procter LLP as legal counsel.
Abecma is a B-cell maturation antigen (BCMA)-directed genetically modified autologous T cell immunotherapy, which is indicated for the treatment of adult patients with multiple myeloma who have received at least two prior therapies. The therapy is currently available only through a restricted program under a Risk Evaluation and Mitigation Strategy (REMS) due to the risk of cytokine release syndrome and neurologic toxicities.
This strategic acquisition is based on a press release statement and is subject to the successful completion of the tender offer and other closing conditions. With annual revenue of $48.3 billion and a strong gross profit margin of 75%, BMY continues to demonstrate its industry leadership. Discover more detailed metrics and expert analysis with InvestingPro, where you’ll find 13 additional ProTips and comprehensive valuation metrics for informed investment decisions.
In other recent news, Bristol Myers Squibb has received approval from the European Commission for its combination treatment of Opdivo and Yervoy for advanced liver cancer, specifically hepatocellular carcinoma. This approval is based on the Phase 3 CheckMate -9DW study, which demonstrated improved overall survival rates for patients using the combination therapy compared to alternative treatments. Additionally, the U.S. FDA has accepted a supplemental biologics license application for the same dual therapy for colorectal cancer, granting it Breakthrough Therapy Designation and Priority Review status. The FDA has set a target action date of June 23, 2025, for this application. Furthermore, Bristol Myers Squibb has announced quarterly dividends of $0.62 per share for common stock and $0.50 per share for convertible preferred stock, reflecting its financial health and commitment to shareholder value. The company also released final results from the CheckMate -816 study, showing significant survival benefits of Opdivo combined with chemotherapy for resectable non-small cell lung cancer. These developments underscore Bristol Myers Squibb’s ongoing efforts in advancing cancer treatments and maintaining financial stability.
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