2seventy bio secures $170 million in private placement financing

Proceeds will be used to support 2seventy bio’s pipeline of new cell therapy programs

Funding, Combined with Reduced Net Cash Expenditure and ABECMA Business Progress, Supports Extension of Cash Runway Through 2025

CAMBRIDGE, Mass., March 16, 2022–(BUSINESS WIRE)–2seventy bio, Inc. (Nasdaq: TSVT), a leading immuno-oncology cell therapy company, today announced that it has agreed to sell approximately 13,934,427 common shares to a select group of institutional investors and qualified investors in a private placement. Upon closing of the financing, 2seventy bio will receive gross proceeds of approximately $170 million, before payment of offering fees and expenses, based on a price of $12.20 per share, the 2seventy bio common stock will close on Nasdaq on March 15, 2022. The 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 needs and working capital.

The private placement included leading 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.

“About 100 days after the launch of 2seventy bio, we have taken significant steps to secure the financial foundations of the business. We are increasingly convinced of the commercial launch of ABECMA in the United States, we are executing a plan to rebalancing our consumption and we have secured significant funding from leading healthcare investors. Together, we expect these steps to take us to critical milestones and reach 2025,” said Nick Leschly, director of kairos. “Having exercised due diligence to understand our platform, pipeline and ABECMA’s business outlook, we are pleased to welcome many new investors to our shareholder base. We believe you end up with the investors you deserve, and we have a shareholder base that has a shared belief in our mission, a non-progressive long-term focus, and the ability to dig deeper into the science. »

2seventy bio ended 2021 with cash, cash equivalents and marketable securities of $362.2 million. Combined with the company’s expectations for ABECMA’s commercial sales in the United States in 2022, a reduction in planned net cash outlays for 2022 to a range of $190-220 million, and net proceeds from the private placement, the company anticipates that it will have sufficient cash and cash equivalents to fund operations currently planned through 2025. 2seventy bio anticipates that this lead will bring the company significant clinical data updates, new INDs and continued progress in the commercialization of ABECMA.

Goldman Sachs & Co. LLC acted as exclusive placement agent. The common shares described above are being sold pursuant to 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 in the lack of registration or an applicable exemption from registration requirements. The company has agreed to file a resale registration statement with the Securities and Exchange Commission, for purposes of registering 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 buy the common stock described above, and there will be no sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. Any offering of the stock or common stock described above under the resale registration statement will be made only by way of prospectus.

About 2seventy bio

Our name, 2seventy bio, reflects why we do what we do – TIME. Cancer wastes time, and our goal is to work at maximum speed to translate human thought into action – 270 miles per hour – to give more time to the people we serve. We are building the leading cell therapy company in immuno-oncology, focused on discovering and developing new therapies that are truly disrupting 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 deliver next-generation cell therapies that focus on a wide range of hematological malignancies, including the first FDA-approved CAR T cell therapy for multiple myeloma, as well as solid tumors. Our research and development is focused on providing therapies designed with the goal of “thinking” smarter and faster than disease. Importantly, we remain focused on achieving these goals by staying authentic and true to our “why” and keeping our people and culture top of mind every day.

For more information, visit www.2seventybio.com.

Follow 2seventy’s bio on social media: Twitter and LinkedIn.

2seventy bio is a registered trademark of 2seventy bio, Inc.

Caution Regarding Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to: statements regarding the expected timing of the closing of the private placement; the intended use of the proceeds of the private placement; expectations regarding ABECMA’s commercial sales; net cash expenditure forecast in 2022; and the expected cash flow and its impact. All forward-looking statements contained in this press release are based on management’s current expectations and beliefs and are subject to a number of important risks, uncertainties and factors that may cause actual events or results to differ. differ materially from those expressed or implied by any forward-looking statement. statements contained in this press release, including, without limitation, the risk that we may not realize the expected benefits of the separation; the risk that the separation could adversely affect our business, results of operations and financial condition; our lack of an independent operating history and the risk that its accounting and other management systems may not be prepared to meet the financial reporting and other requirements of operating as an independent public company; the risk that we may not be able to make timely or cost-effective changes necessary to operate as an independent business; the risk that dedicated financial and/or strategic funding sources may not be available on favorable terms or at all; the risk that the separation could adversely impact our ability to attract or retain key personnel; the risk that the separation could adversely impact the effectiveness of development and commercialization efforts by us and our partners; the risk of possible disruption to our business due to the separation; the risk that our BLAs and INDs will not be accepted for filing by the FDA on a timely basis, if at all; the risk that our plans for the preclinical and clinical development and regulatory approval of our product candidates will not be successfully completed on schedule or at all; the risk that ABECMA will not experience the commercial success that we may anticipate; and the risk that we may not be able to manage our operating expenses or the use of our cash for operations. For a discussion of other risks and uncertainties, and other important factors, each of which could cause our actual results to differ materially from those contained in the forward-looking statements, see the section entitled “Risk Factors” in the statement of information contained in our registration form. Statement on Form 10, as supplemented and/or modified by our most recent Quarterly Report on Form 10-Q and any other filings we have made or will make in the future with the Securities and Exchange Commission. All information contained 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.

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contacts

Investors:
Elizabeth Pinpank, 860-463-0469
[email protected]

Media:
Victoria Wagner (von Rinteln), 703-599-2868
[email protected]

Morgan Adams, 774-313-9852
[email protected]

Carol M. Barragan