TSVT - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the 2Seventy Bio Second Quarter 2024 Earnings Conference Call. [Operator Instructions]Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jenn Snyder with 2Seventy Bio. Please go ahead.

Jenn Snyder

good and operator, you, morning, everyone. Thank for you joining us. Thank press our second This morning, XXXX on a issued we quarter release financial results. can the Xseventybio.com. The Media release be the in press Investors section of company's at website found &

and to As a will uncertainties. to currents lines discussion strategic review reminder, with These regarding of timing respect subject expectations and to forward-looking expectations, are ABECMA, risks applications statements and Xseventy among regulatory regarding plans, statements perceived which efficacy our our results, others. expectations include statements additional and benefits therapeutic of certain Bio's for forward-looking today's related sales, and and statements conditions, future include time and and financial studies the ABECMA financial

uncertainties Factors those in represent of reports forward-looking relied our and views and other Actual our as of differ section and as These should as representing not results Form may factors the any other described date. risks, materially XX-K, subsequent Risk statements most of views various due recent our filings. quarterly upon call SEC including this be to

place statements. not we joined these obligation are we by update it Vicki no forward-looking any required by questions the Chip. during any to except Chip Truppel-Hartman, Baird, call, I to undue and law, undertake reliance Q&A. cautioned also to for revise over line Chief And Executive or Officer; Eatwell, statements, turn Anna Financial On will You is Chief the today's and forward-looking on Officer; Chip? as Chief Medical are on now Officer,

William Baird

into we and Eatwell, quarter of on walk financial our I'd disclosed you the and like some go thank all to detail financials. second Officer, our results and business operational joining XXXX business for morning. Jenn, updates will Financial Vicki you, Today, updates. this Chief then Thank and through recent our

beginning focus business. commercial exclusively the ABECMA took to the decision Xseventy XXXX, strategic in of we At on the

the was believe the decision, or right we situation. continue was it it risk-free not an easy one While to given

we're have we beginning our see streamline succeeded our structure sheet the cost Nordisk dramatically positive and megaTAL hemophilia to with A reducing related Novo ABECMA. April structure cost sale driving to quarter what our proceeds technology strengthened oncology to the of million impact for controlling major financial sale second Regeneron and the R&D control from to what of are balance and can and out in business quarter, accomplishing also We of our this to We're growth in in June. resources $XX the Strengthening our the in set This and program in do: position, strategic pivot. dedicating we our

was our Novo deal another strategic streamline business. effort and to focus important transaction in the The further

team We changes incredible for who us we enacted have The are line our grateful the enable effort corner performance that thank members have treat ABECMA to work. to the in to earlier the to and their approval of following and since quarter them FDA's a focus Nordisk to XXX% energy on ABECMA Novo turned the report second and in patients. I'm U.S. pleased Xseventy transitioned that

quarter expected previously initiated as the and in revenue third our achieved in we launch. second as As guided, growth modest line we

a X-month As a time the we shared, enroll patient between roughly backlog, we've and patient we lag revenue. there's time that previously the recognize receives a and

the ABECMA. stopped the an who and seen also revenue prescribing of demand. were a patients have first process double-digit in indicator growth encouraged by in use leading While was impactor modest, growth apheresis, previously the in among step we increase undergoing sites We've

the launch received Additionally, our commercial messaging and well of backlog, providers. has a the efficacy consistent profile been on safety by

terms of the of what curve is to say to return soon growth. too it's the shape in While the

of myeloma. We've of the the ABECMA third play year, teams for second These the half launch and executing patients and that role important entered an ABECMA. indicators belief with has line BMS on support our living remain to the Xseventy ongoing focused now

the patients, on come. case to becomes line namely I'll of we turn well-established focused manufacturing believe with profile real and time shortly. clearly competitive in label population product. it earlier and return a But is the Q&A in in-spec optimistic launch setting, the about to for We results. continues to evidence to further for manageable second Our quarter a competitive [indiscernible] with is to that high efficacy about the ABECMA, to safety the world rapid a articulating profile data growth have Vicki? talk remain We'll class-exposed triple the we reproduced get high which need. and turnaround unmet real-world in now, profile over Vicki in rates With that is mature, months

Vicki Eatwell

Thanks, Chip.

ABECMA Quarter million, of as ongoing reported third $XX revenues with and Bristol-Myers by Squibb line U.S. in was line our Second expansion the setting. which were reflects into expectations

we ABECMA as stated, patients Chip to increased the indicators, forward to half the a delivering of As in we of of are look year. number seeing second to number and growth return an we growth

ABECMA or the we which the and reminder, each a business U.S. to losses loss profits the in As we quarter, share selling and expenses related largely our of represents record sold revenue, BMS, U.S. share with collaboration business. or of goods XX% equally of cost arrangement revenue

collaboration $X.X with revenue we quarter, related of to reported BMS. second the our In million collaboration

briefly cost Turning to structure. our

second beginning R&D of XXXX. the Oncology of in streamlining versus million a completion quarter same $XX reduction GAAP the or business year. at last first half by the XX% our achieved beginning versus XXXX million, driven in a the $XX to expenses of the operating we primarily our of quarter, quarter the of reduction This Regeneron or XX% quarter and the sale the of operations

XXXX expect further small to efficiencies. as prioritizes our team operating identifying continue remaining decline expenses We to into

reduction We expect a million net in cash $XXX our to range million. spend revised to previously net XXXX, of million range of from $XX spend million a cash which is $XX guided $XX

a million continue to of quarter GAAP turn net profitability Chip. onetime transaction XXXX. as $XX.X now it Lastly, profitability with back to path the Novo to profitability the quarterly we I'll for a while and breakeven income from helped income. event, achieve With us cash soon see that, flow And is for as has the

William Baird

Thanks, Vicki.

As I'll are encouraged year meaningful the and so we've the far line ABECMA half to for earlier we accomplished in reiterate its impact We've we corner close, second and with believe of for to turned patients a continue by up set 'XX. the setting. this that in make potential what

which, time of We myeloma on top our are are more that patient partners every singularly delivering serve BMS, with to remains able priority. focused our we together for

to rest we carefully priorities manage focused continue Operator? that, happy and we're Xseventy on we structure, reaching a cost focused streamlined will value. stay the to these will drive are We shareholder team, profitability. breakeven capital investor to on with the questions. of with With take Together

Operator

[Operator Instructions].

Graybosch of line first comes Our the with Leerink. question from Daina

Daina Graybosch

either I'd you line. help nature the for like be can the give of going Any patients of us those the type are would the that understand more third of or would color sites great. understand to apheresis in starting of that forward growth

William Baird

Thanks, believe for that of these out and other terms the Daina. patients privacy patients better well late-line starting as a patients. HIPAA we're as as of type as it the hard clearly appreciate fifth concerns, with third-line separate the for seeing But of we impact later patients. do we understanding both have to is patients, to move forward. to of mix It's well we'll reasons see those line, line us in having question. I as between third-line

gone time we've said patient writing can the a of detail encouraged that terms centers back of long major of label, sites And In previously BMS to efforts primary been volume. against the ABECMA [indiscernible] think of driver in of there, again, to had broader sites, broader data us the Xseventy before, to the a and business, function for the And as the total are the we I and the we've terms some script without academic a the teams again. of see of in coming ABECMA terms set that that's collective the

Operator

comes next Guggenheim. the Kelsey Our with line question from of Goodwin

Kelsey Goodwin

just maybe the differentiate can underlie if using quick strategies on at the think the you this that Could sales a Xseventy? about on on I color efficacy these and breakeven how assumptions quarter. you sites? get could some color some Congrats more you more provide then And provide for you're progress to safety follow-up. Maybe that

William Baird

Anna, questions to for question I'll there. look points do maybe how the the safety, the on in thanks and detailing want you in present describing backlog. Vicki, we're ask Anna and the first terms and to efficacy like. the on ahead? we can breakeven you key could comment on that what how of go Kelsey, Sure. of then, comment And kind

Anna Truppel-Hartman

Yes. Thanks Chip. Thanks so so much, much, Kelly.

our very remember, is gained to time. that we consistent evidence all, endpoints meeting, are bridging of studies, [indiscernible] we as and Also, of that or what ABECMA first in you , over a clearly the so the with all note have significance KarMMa-X it seen including all throughout -- the very -- superiority also is trial. ODAC in part benefit much benefit on of other with the over that for all seeing standard significant that well PFS much across subpopulations important we're a clinical show efficacy messaging were KarMMa-X, significant survival in was and progression-free care as the we included consistent So will of more has importance

that clearly messaging therapy. the bridging So on we are

who with [indiscernible] have outcomes our ABECMA bridging showed last it those or outcomes XX.X And based bridge greater patients is bridging medium post to even by this. on decreased PFS of we post prior had months better were and those have ABECMA is burden which that at and time the disease prior decreased infusion, burden influenced patients of How ABECMA. to influenced therapy a presented important infusion data we in because data, seen seen by

second that's message. So the

further messaging enhanced line real in for that optimized on are bridging. because for options world, therapy efficacy we available is setting even So the easier there that are is more earlier bridging clearly with

KarMMa-X. are USPI safety least, low delayed -- as data believe not a neurotoxicities in otherwise we as publishing, but single well manageable, anything in we Parkinson's but such throughout low and last, also is well or GPS. have And every as we very, seen frequency with compelling safety numbers set do these is ABECMA. very see safety very didn't consistent of our profile. profile We the profile with in the And We

the efficacy and do together, have believe the safety we strong a very profile. we taking So

don't something process know with manufacturing combined to anyone the very reliable I well. add that to Yes, if as messaging? wants a

William Baird

to No, well question said. breakeven. on the over Vicki around then you And

Vicki Eatwell

your Yes. Thanks, Kelsy, for question.

assumptions believe less of as total we So sales company. for underlying makes million in breakeven, past the guided of breakeven in we've total us a sales $XXX U.S. that terms than

we're the year OpEx as into into continuing to Obviously, So then end XX head of and the XXXX. we tighten internal

And so delivering of holdco this that given the to become a it doesn't as we're breakeven us savings take much year. amount for cost

Operator

Morgan with Purohit next the comes Vikram Our question from Stanley. of line

Unknown Analyst

This Morgan on is for Vikram.

to wanted launch and that understand treated initially later curve on for with more I So this been to ABECMA for regards date X particularly early the line context experienced. volume how the of XX launch patients to curve experience ABECMA, uptake to compared the setting a bit the you of with slope the in have

William Baird

the for question thanks Morgan, there.

can we in quarter. into double-digit AEs which more. a has their call earnings growth little to will growth, I the in saw quarter -- quarter, able growth in going think And the when answer October the tuned. results be that and But certainly, it into stay report pull-through in growth our third is get third thereafter, should here bit BMS October, we're we revenue late meaningful shortly of the to is when second

we'll So call over and now. continue time able slope to to on we when how define change months are curve of much curve same be that X from should better the the that

as one, the one. think an I early encouraging But we've positive characterized, been a experience, has

a first data much directed green are shoots the where a market with to in to I'll think, patients much AFS, line market, This waiting. therapy of a sites And commercial and we is patient a again, much seen as just with the the the plays better back much physicians last us doesn't ABECMA it launched detail of to favor of the the plays it that population. broader say or belief in even have treating we've is terms take We as larger fifth that break bigger a is in fluid, that thing than set I and approved there growth different when much coming was additional dynamic CAR-T to just interactions there third-line by market, detail label. larger in some more more measured kind big had the a and and it bolus ABECMA this which our was for to Vicki much

we've signs optimistic be So of come I think the more curve. the to but give seen there, reason us to a lot about

Operator

Sachs. of the comes with Our Goldman next Salveen from Richter question line

Unknown Analyst

[indiscernible] is Savi. on This for

call, you there? have -- start the in have the ABECMA missed do earlier led around and you around providing when the this you on timing there guidance for And Just pipeline readout updates case assets the might data next is Regeneron sales. might type any

William Baird

those for questions. Thanks I Yes. take can those.

haven't guidance, In we terms provided revenue of guidance.

I specifically want couple there. launch get quarters guide before we to to of we start think a the

So at this guiding that Regeneron on one their time. cell assets business. the Regeneron stay then tuned, but products that not went a we're That's from to now. And oncology medicines more

quarters. factor direct late-stage control participation do milestones, in that's but We anymore. us or in next be visibility going those So commercial we for and have over the don't of downstream certainly to not of a have couple terms

base soil into those Regeneron they have. and capital assets, people was there longer-term real estate fertile those story the with the that Really, those moving

And top we unlocking of at call, streamlines we what so that's can on we've So that the ABECMA. done. approach focus value said exclusively with again, the our as

Operator

comes Our with question the line next of from Yaron Cowen. Werber

Unknown Analyst

operates This QX. Jana question specific are previous physicians patients Are about subsets from follow-up you multiple Yaron. that of preferentially would that started on [indiscernible] in ABECMA myeloma any is of for receive the there rather asking that on the types bispecific? patients hearing A

William Baird

question, for the thanks Jana. No,

I spectrum. think a it's broad

It's it's said, third-line later patients. patients. you As line

severe I One heavily, that a is those the experienced candidly. cases. that the of I with is for is just particularly of the risk we're of something things of risk the hearing think some have sites Parkinson's about of that weighs And more sector safety think one something neurotox,

so again, think differentiated a profile. And safety have I there, we

move terms we'll hearing And of more better, third I treated the see physicians. or to split about. to if Anna and we so to line I'll add later that's But anything think days hear But one what launch. that patients understand we the we're and again, in the as start there, it's of there's line early through ask the here from

Anna Truppel-Hartman

Thank to in of repeat ABECMA. Chip. as as I would use patients our well the Yes. you, that [indiscernible] a like benefit evidence all trials again clinical from

That's have So a there that is outcome subgroup worse or every can benefit. better why patient shown no outcome.

that in that also conferences, also that's prior previous to mind. recommended also TCEs. keep So the is in something use clearly There CAR-T fact the to was

throughout prior the of we what receive to TCE, And being a CAR-T so discussed. the conferences CAR-Ts whenever are kind all and a and sequencing of access KOLs all where or that patient that's can can a of given questions, and are are hearing the et cetera,

matters is and earlier finally, choice mentioned, And the patients, safety lot, Chip physicians guides safety -- especially Parkinson's as profile patient's also for it's low also of low frequency compelling in and lines, many well and very also a decision-making. already manageable which a the

Operator

Leerink. the from line Daina Our Graybosch question with is of

Daina Graybosch

think wonder I the for for I is a talking question follow-up. about Anna. safety. We're lot And this --

on or differential what safety versus ABECMA with view updated competing you data And if any more CAR-T the other wondering the the the choice and neurotox, underlies to And well? product? doctors see about? we the one in of Parkinsonism specifically I'm with their programs, that real are meaningful world have other lower just As ABECMA are the grade which talking those ABECMA to it is as

Anna Truppel-Hartman

Yes. question. you, A Thank Daina. good very

first data day I'd say in like of are day. that, So coming to after rewiden of course, all,

that everything looking comes that. always we published at so in are everything is and assessing that And and

looking looking our those are and specifically addition the collecting In that, of of also are are database, events, events, course, where at to at we all adverse collecting that. we we and safety own course,

the that published is characterized. there that's really of are very well I between a knowing difference this I that at we neurotoxicity, in and the cars that think is events also we point all so don't huge like And think seeing are ICAN time.

effect your the Daina? you're also more specifically that products. really events there several a cetera. non-ECA a fact be to an you're low It's neurotoxicity of includes bit seems debate characterization, And general, et is frequency a to about. ABECMA better of the neurotoxicities, in it there for that policy, other But very compared which answer confusing needs at correct, there's terminology question, which Does also and be talking to is everything right

Operator

I'd the no for hand And remarks. questions further to closing to time. call showing like Chip back I'm Baird at over this

William Baird

time the Thank everyone, you, today. thanks, and for for call making

ABECMA execution quarter sharing and We're earnings We returning for continue results to everyone there focus available forward to on third and growth. great latest and day, the day. follow-up with our and analysts again for we throughout on seeing the Have a look ABECMA. call investors to

Operator

you today's concludes for Thank call. your participation. This conference

disconnect. now may You

2seventy bio (TSVT) 7 Aug 242024 Q2 Earnings call transcript