CAMBRIDGE, Mass.–(BUSINESS WIRE)–2seventy bio, Inc. (Nasdaq: TSVT), a leader in immuno-oncology cell therapy, announced today that it has agreed to offer approximately 13,934,427 shares of its common stock to a select group of institutional and accredited investors under the a private sale placement. Upon closing of the financing, 2seventy bio will receive gross proceeds of approximately $170 million, before payment of offering commissions and expenses, based on a price of $12.20 per share, the closing price of 2seventy bio’s common stock on the Nasdaq on March 15, 2009 March 2022 Financing is expected to close on March 17, 2022, subject to customary closing conditions. Proceeds from the financing will support 2seventy bio’s ongoing research and development activities, as well as general corporate purposes and working capital.
The private placement included top healthcare investors: 683 Capital, Armistice Capital, Bain Capital Life Sciences, Boxer Capital, CaaS Capital, Casdin Capital, Cowen Healthcare Investments, EcoR1 Capital, Heights Capital, Janus Henderson Investors, Madison Avenue Partners, Newtyn Management , Nick Leschly & family, RTW Investments, LP and existing investors.
“Around 100 days after the market launch of 2seventy bio, we have taken important steps to secure the financial foundation of the company. We have growing confidence in ABECMA’s commercial launch in the US, we are implementing a plan to rebalance our burn, and we have secured significant funding from leading healthcare investors. Taken together, we expect these steps will take us through critical milestones into 2025,” said Nick Leschly, Chief Kairos Officer. “After carefully reviewing our platform, pipeline and commercial prospects for ABECMA, we are pleased to welcome many new investors to our shareholder base. We believe that you end up finding the investors you deserve, and we have a shareholder base that shares a shared belief in our mission, a non-incremental, long-term focus, and the ability to delve deep into the science.”
270 Bio ended 2021 with $362.2 million in cash, cash equivalents and marketable securities. Combined with the Company’s expectations for the commercial sale of US ABECMA in 2022, a reduction in expected 2022 net cash outflows to a range of $190 million to $220 million and net proceeds from the private placement, the Company expects that it will will have sufficient cash and cash equivalents to fund currently planned operations through 2025. 2seventy bio anticipates that this runway will guide the Company through meaningful clinical data updates, new INDs and continued advances in the commercialization of ABECMA.
Goldman Sachs & Co. LLC acted as exclusive placement agent. The common shares described above are being sold in a private placement and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Company has agreed to file a resale registration statement with the Securities and Exchange Commission to register the resale of the common shares issued pursuant to the offering.
This press release does not constitute an offer to sell, or the solicitation of an offer to purchase, the common stock described above, nor shall there be any sale of the securities in any jurisdiction where such offer, solicitation or sale has previously been unlawful would have been eligible for registration or qualification under that state’s securities laws. Any offering of shares or common shares described above under the Registration Statement for Resale is being made only by means of a prospectus.
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Our name, 2seventy bio, reflects why we do what we do – ZEIT. Cancer takes time, and our goal is to operate at the maximum speed human thought can take—270 miles per hour—to give more time to the people we serve. We are building the leading immuno-oncology cell therapy company focused on discovering and developing new therapies that truly revolutionize the cancer treatment landscape.
With a deep understanding of the human body’s immune response to tumor cells and how to translate cell therapies into practice, we apply this knowledge to provide next-generation cell therapies focused on a broad spectrum of hematologic malignancies, including the first FDA-approved CAR -T cell therapy for multiple myeloma and solid tumors. Our R&D is focused on delivering therapies designed to “think” smarter and faster than the disease. Importantly, we remain focused on achieving these goals by staying honest and authentic about our “whys” and keeping an eye on our people and our culture every day.
Visit www.2seventybio.com for more information.
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2seventy bio is a trademark of 2seventy bio, Inc.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to: statements regarding the expected timing of the closing of the private placement; the anticipated use of the proceeds from the private placement; ABECMA commercial sales expectations; projected net cash spend in 2022; and expected cash runway and their impact. All forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements contained herein press release, including but not limited to the risk that we may not achieve the anticipated benefits of the separation; the risk that the separation could harm our business, results of operations and financial condition; our lack of independent operating history and the risk that its accounting and other management systems may not be prepared to meet financial reporting and other requirements of operating as an independent public company; the risk that we may not be able to make the changes necessary to operate as an independent business, in a timely or cost-effective manner; the risk that specific financial and/or strategic funding sources may not be available on favorable terms or at all; the risk that the separation could affect our ability to attract or retain key personnel; the risk that the separation may reduce the effectiveness of our and our partners’ development and commercialization efforts; the risk of potential disruption to our business as a result of the separation; the risk that our BLAs and INDs may not be accepted for submission by the FDA within the timeframe we expect, or at all; the risk that our plans for pre-clinical development, clinical development and regulatory approval of our product candidates may not be completed in a timely manner or at all; the risk that ABECMA may not be as commercially successful as we might expect; and the risk of not being able to manage our operating expenses or cash usage for operations. For a discussion of other risks and uncertainties and other important factors that could cause our actual results to differ from those contained in the forward-looking statements, please see the “Risk Factors” section of the information statement included in our registration statement on Form 10 , supplemented and/or amended by our most recent Quarterly Report on Form 10-Q and any other filings we have filed or may file in the future with the Securities and Exchange Commission. All information in this press release is as of the date of publication and 2seventy bio undertakes no obligation to update this information except as required by law.