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2Seventy Bio, Inc. (TSVT)
NASDAQ:TSVT
US Market

2seventy bio (TSVT) AI Stock Analysis

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2seventy bio

(NASDAQ:TSVT)

Rating:41Neutral
Price Target:
$5.00
▲(0.00%Upside)
The overall stock score for TSVT is primarily hindered by poor financial performance and valuation metrics. While technical indicators suggest some market momentum, significant corporate events such as the recent merger and delisting exacerbate the company's challenges. The high financial leverage and operating losses overshadow the stock's prospects, resulting in a low overall score.
Positive Factors
Acquisition Premium
The acquisition of 2Seventy Bio by Bristol-Myers Squibb implies an 80% premium to the previous closing price, boosting investor confidence.
Cash Position
2Seventy Bio ended the quarter with $192 million in cash, providing a solid financial base and extending its cash runway beyond 2027.
Negative Factors
Market Uncertainty
Market uncertainty persists with the expected launch of a third BCMA CAR-T by competitors, posing a threat to Abecma's market position.
Revenue Challenges
2Seventy's top-line revenue fell short of expectations, highlighting challenges in capturing anticipated profits from Abecma.

2seventy bio (TSVT) vs. SPDR S&P 500 ETF (SPY)

2seventy bio Business Overview & Revenue Model

Company Description2seventy bio (TSVT) is a biotechnology company focused on the development and commercialization of innovative cell therapies for the treatment of cancer. Operating in the biopharmaceutical sector, 2seventy bio is dedicated to advancing its pipeline of autologous and allogeneic therapies to improve the lives of patients with serious and life-threatening oncologic diseases.
How the Company Makes Money2seventy bio primarily generates revenue through the development and commercialization of its pipeline of cell therapies. The company seeks to monetize its therapies via partnerships and collaborations with other pharmaceutical companies and institutions, which can involve upfront payments, milestone payments, and potential royalties from commercial sales. Additionally, 2seventy bio may engage in licensing agreements that allow other companies to utilize its proprietary technologies in exchange for financial compensation. The company's earnings are significantly influenced by the successful research, development, and regulatory approval of its products, as well as the strategic partnerships it forms within the biopharmaceutical industry.

2seventy bio Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q3-2024)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in ABECMA revenues and significant cost reductions, indicating positive progress towards breakeven. Despite seasonal challenges and market competition, the company remains optimistic about future growth and operational efficiency.
Q3-2024 Updates
Positive Updates
Significant Revenue Growth for ABECMA
ABECMA U.S. revenues grew 42% over the prior quarter, reflecting ongoing expansion in the third-line setting.
Streamlined Operations and Cost Reduction
The company reduced its burn rate to approximately $10 million this quarter and achieved a 24% reduction in GAAP operating expenses versus the prior quarter.
Successful Strategic Transactions
Sale of oncology and autoimmune R&D pipeline to Regeneron and the hemophilia A program to Novo Nordisk for $40 million.
Improved Manufacturing Success Rate
Achieved a manufacturing success rate north of 95%, contributing positively to margins.
Negative Updates
Seasonal Impact on ABECMA Sales
Fourth quarter ABECMA revenues expected to be impacted by competition and a reduction in CAR-T infusion schedules during the U.S. holiday season.
Continued Uncertainty in Market Position
Acknowledgement of a dynamic and competitive multiple myeloma market, requiring continuous efforts to maintain and grow ABECMA's market share.
Company Guidance
During the Q3 2024 earnings call for 2seventy bio, significant guidance was provided regarding the company's focus and financial outlook. The executives highlighted a strategic shift towards prioritizing ABECMA, with U.S. revenues reaching $77 million in the third quarter, reflecting a 42% growth over the previous quarter. They projected total U.S. ABECMA revenues for 2024 to be in the range of $240 million to $250 million, noting a likely reduction in the fourth quarter due to seasonal factors. The company's burn rate was reduced to approximately $10 million this quarter, with operating expenses seeing a 24% reduction compared to the prior quarter. They also reported collaborative arrangement revenue of approximately $11 million with BMS. The company aims to achieve breakeven operations potentially by 2025, revising the breakeven sales point to closer to $300 million, down from $400 million initially projected. Looking ahead, the focus will be on competing commercially for ABECMA and optimizing cost structures to enhance operating margins.

2seventy bio Financial Statement Overview

Summary
2seventy bio is facing significant financial challenges, marked by declining revenues, substantial losses, and high leverage. The company's profitability metrics are under pressure, and cash flow issues persist, indicating the need for strategic realignment and improved financial management to stabilize operations.
Income Statement
35
Negative
The company has experienced declining revenues over the reported periods, with a sharp drop from 2020 to 2024. The gross profit margin remains positive, but the net profit margin is significantly negative, indicating substantial losses. Despite efforts to manage costs, EBIT and EBITDA margins are also deeply negative, reflecting challenges in achieving operational efficiency.
Balance Sheet
40
Negative
The company exhibits a high debt-to-equity ratio, indicating heavy reliance on debt financing. Return on Equity (ROE) has been negative, driven by consistent net losses. Although stockholders' equity has declined, the equity ratio shows a relatively stable position, suggesting some level of asset-backed security.
Cash Flow
30
Negative
Operating cash flow is consistently negative, demonstrating struggles in generating cash from operations. The free cash flow to net income ratio is unfavorable, and the free cash flow growth rate is negative, highlighting cash management challenges. Although investing cash flow has been positive recently, it is overshadowed by the negative operating performance.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
37.86M100.39M91.50M54.52M248.12M
Gross Profit
37.86M83.47M65.28M41.93M242.73M
EBIT
-115.43M-216.70M-262.91M-313.51M-144.64M
EBITDA
-98.45M-206.42M-251.38M-297.16M-131.45M
Net Income Common Stockholders
-57.25M-217.57M-254.14M-276.21M-138.17M
Balance SheetCash, Cash Equivalents and Short-Term Investments
174.75M216.99M266.27M362.18M-127.60M
Total Assets
479.51M565.43M656.66M759.67M312.62M
Total Debt
243.72M256.67M270.17M282.21M127.60M
Net Debt
172.47M181.72M199.14M151.80M255.21M
Total Liabilities
268.70M310.13M346.20M399.85M237.99M
Stockholders Equity
210.81M255.30M310.47M359.82M74.63M
Cash FlowFree Cash Flow
-85.70M-180.72M-259.98M-226.61M-90.05M
Operating Cash Flow
-85.00M-166.86M-237.13M-207.03M-67.79M
Investing Cash Flow
80.76M43.86M11.70M15.41M-22.26M
Financing Cash Flow
417.00K127.39M166.23M354.89M90.05M

2seventy bio Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.00
Price Trends
50DMA
4.69
Positive
100DMA
3.68
Positive
200DMA
4.06
Positive
Market Momentum
MACD
0.09
Positive
RSI
72.25
Negative
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSVT, the sentiment is Positive. The current price of 5 is above the 20-day moving average (MA) of 4.99, above the 50-day MA of 4.69, and above the 200-day MA of 4.06, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSVT.

2seventy bio Risk Analysis

2seventy bio disclosed 65 risk factors in its most recent earnings report. 2seventy bio reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

2seventy bio Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$742.75M-159.34%-48.97%69.32%
56
Neutral
$346.87M-27.40%15.40%35.42%
54
Neutral
$5.31B3.26-45.10%2.79%16.76%0.02%
47
Neutral
$286.41M-938.38%38.82%-645.78%
47
Neutral
$272.14M-30.47%-22.66%
46
Neutral
$305.16M-41.59%0.42%
41
Neutral
$266.15M-1.94%-32.07%98.22%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSVT
2seventy bio
5.00
1.07
27.23%
ARCT
Arcturus Therapeutics
12.90
-19.46
-60.14%
RNAC
Cartesian Therapeutics
10.77
-19.96
-64.95%
TSHA
Taysha Gene Therapies
2.61
-1.14
-30.40%
AVIR
Atea Pharmaceuticals
3.22
-0.70
-17.86%
OLMA
Olema Pharmaceuticals
4.21
-9.41
-69.09%

2seventy bio Corporate Events

Delistings and Listing ChangesExecutive/Board ChangesM&A Transactions
2seventy bio Completes Merger, Delists from Nasdaq
Negative
May 13, 2025

On May 13, 2025, 2seventy bio completed a merger that led to significant changes in its corporate structure and stock market presence. The company terminated its 2021 Employee Stock Purchase Plan and Stock Option and Incentive Plan, and requested Nasdaq to suspend trading and delist its common stock. As a result, 2seventy bio’s shares will no longer be listed on Nasdaq, and it plans to terminate its registration and reporting obligations with the SEC. Additionally, the merger resulted in a complete overhaul of the company’s board of directors and executive team, with new appointments including Sandra Ramos-Alves as President and Treasurer.

The most recent analyst rating on (TSVT) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on 2seventy bio stock, see the TSVT Stock Forecast page.

Spark’s Take on TSVT Stock

According to Spark, TipRanks’ AI Analyst, TSVT is a Neutral.

2seventy bio exhibits significant financial difficulties, with declining revenues and persistent losses overshadowing the company’s performance. Technical indicators show strong momentum, but overbought signals could limit further gains. Poor valuation metrics add to the concerns, reflecting the challenges faced by the company amid high volatility.

To see Spark’s full report on TSVT stock, click here.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.