Immuno-oncology cell therapy company, 2seventy bio inc. (TSVT:NASDAQ), entered into two recent agreements with the ultimate goal of developing a way to deliver megaTAL messenger RNA (mRNA) products to treat hemophilia, reported Wedbush analyst David Nierengarten in a Jan. 6 research note.
"We view these partnerships as validation of 2seventy's gene editing technology that can potentially be used to treat severe genetic diseases," the analyst wrote.
As for its expanded agreement with Novo Nordisk, 2seventy grants Novo the exclusive option to license 2seventy's mRNA-based megaTAL technology, Nierengarten relayed. Along with the upfront payment, Novo may receive near-term milestone and option exercise payments up to $35 million, payment upon certain development, regulatory and commercial milestones and royalty payments on future net sales. Novo will cover all research and development costs.
Concerning its deal with Genevant, noted Nierengarten, in addition to the payments up to $10 million, 2seventy is responsible for making to Genevant development and commercialization milestone payments as well as royalty payments on future product sales.
Nierengarten pointed out that 2seventy's shares are currently undervalued, in light of the company's pipeline targeting numerous oncological indications and the robust sales expectations for ABECMA.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
Disclosures for Wedbush Securities, 2seventy bio Inc., Jan. 6, 2022
Wedbush Securities does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see pages 2–3 of this report for analyst certification and important disclosure information.
Analyst Certification: We, David Nierengarten and Dennis Pak, certify that the views expressed in this report accurately reflect our personal opinions and that we have not and will not, directly or indirectly, receive compensation or other payments in connection with our specific recommendations or views contained in this report.
The analysts responsible for preparing research reports do not receive compensation based on specific investment banking activity. The analysts receive compensation that is based upon various factors including WS' total revenues, a portion of which are generated by WS' investment banking activities.
Company Specific Disclosures: 1. WS makes a market in the securities of 2SEVENTY BIO INC.
This report is intended for [email protected] Unauthorized distribution is prohibited.
Wedbush disclosure price charts are updated within the first fifteen days of each new calendar quarter per FINRA regulations. Price charts for companies initiated upon in the current quarter, and rating and target price changes occurring in the current quarter, will not be displayed until the following quarter. Additional information on recommended securities is available on request.
Disclosure information regarding historical ratings and price targets is available: Research Disclosures *WS changed its rating system from (Strong Buy/ Buy/ Hold/ Sell) to (Outperform/ Neutral/ Underperform) on July 14, 2009.
Applicable disclosure information is also available upon request by contacting the Research Department at (212) 833-1375, by email to [email protected] You may also submit a written request to the following: Wedbush Securities, Attn: Research Department, 142 W 57th Street, New York, NY 10019.
OTHER DISCLOSURES: The information herein is based on sources that we consider reliable, but its accuracy is not guaranteed. The information contained herein is not a representation by this corporation, nor is any recommendation made herein based on any privileged information. This information is not intended to be nor should it be relied upon as a complete record or analysis: neither is it an offer nor a solicitation of an offer to sell or buy any security mentioned herein. This firm, Wedbush Securities, its officers, employees, and members of their families, or any one or more of them, and its discretionary and advisory accounts, may have a position in any security discussed herein or in related securities and may make, from time to time, purchases or sales thereof in the open market or otherwise. The information and expressions of opinion contained herein are subject to change without further notice. The herein mentioned securities may be sold to or bought from customers on a principal basis by this firm. Additional information with respect to the information contained herein may be obtained upon request.
Wedbush Securities does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. Please see pages 3–7 of this report for analyst certification and important disclosure information.