2seventy bio Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
2seventy bio, Inc. Reports Second Quarter 2024 Financial Results
2seventy bio, Inc. (NASDAQ:TSVT) has announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Current Quarter | Year-Ago Quarter | Year-over-Year Change | Consensus Estimate |
|---|---|---|---|---|
| Total Revenue | $9.0M | $36.0M | -75% | $14.19M |
| Earnings Per Share (EPS) | -$0.65 | Not listed | Not listed | -$0.65 |
| Net Income (Loss) | $24.9M | -$42.1M | - |
Interpretation
The company's revenue significantly declined by 75% year-over-year from $36.0M to $9.0M, falling short of the Wall Street consensus estimate of $14.19M. However, the quarterly net income of $24.9M marked a substantial turnaround from a net loss of $42.1M in the same period last year, due in part to a $48M one-time gain from the sale to Novo Nordisk.
Revenue Performance Across Major Segments
| Segment | Current Quarter | Previous Guidance | Comparison to Guidance |
|---|---|---|---|
| Abecma US Revenue | $54M | Not listed | Not listed |
| Collaborative Revenue | $4.4M | Not listed | Not listed |
Interpretation
Abecma's U.S. revenues reached a solid $54M, with collaborative arrangement revenue generating $4.4M for the quarter. This demonstrates strong performance in the Abecma segment, attributed to regulatory approvals and increased patient demand, which could indicate continued growth in the upcoming quarters.
Operational Data
- Quarter-on-Quarter Reduction in Operating Expenses : Approximately 43% ($28M)
Comments from Company's Officers
CEO Chip Baird highlighted the transformative year for 2seventy bio, citing significant cost reductions and balance sheet strengthening through strategic sales to Regeneron and Novo Nordisk. Baird expressed optimism about the company nearing quarterly profitability by the end of 2025 and anticipates continued revenue growth for Abecma in the third quarter as more patients undergo apheresis.
Forward Guidance
The company did not provide specific forward guidance figures but mentioned a lowered net cash spend range to $40-60 million for 2024 and confirmed a cash runway extending beyond 2027.
Stock Price Movement
Following the earnings release, the stock price saw a modest increase of approximately 0.87%.
By focusing on strategic realignment and leveraging its partnerships, 2seventy bio appears well-positioned for further growth and profitability in the coming periods.