2seventy bio(US:TSVT)2023-08-14 11:06Financial Performance - The net loss for the three and six months ended June 30, 2023, was $42.1 million and $89.1 million, respectively[143]. - Total service revenue for the three months ended June 30, 2023, was $5.022 million, compared to $5.666 million for the same period in 2022, representing a decrease of 11.4%[151]. - Total revenue for Q2 2023 was $36.0 million, a significant increase of $22.6 million compared to $13.5 million in Q2 2022, primarily driven by higher collaborative arrangement revenue from BMS[174]. - Total revenue for the six months ended June 30, 2023, was $77.7 million, a significant increase of $55.8 million compared to $21.9 million for the same period in 2022[183]. - The net loss for Q2 2023 was $42.1 million, a reduction of $35.3 million compared to a net loss of $77.4 million in Q2 2022[172]. - Net loss for the six months ended June 30, 2023, was $89.1 million, an improvement of $74.0 million compared to a net loss of $163.1 million for the same period in 2022[190]. Revenue Sources - Collaborative arrangement revenue for the three months ended June 30, 2023, was $29.034 million, significantly up from $7.035 million in the same period of 2022[152]. - Revenue from the U.S. Abecma collaboration with BMS for the three months ended June 30, 2023, was $24.543 million, with no revenue recognized in the same period of 2022[152]. - The company has not recognized any revenue from product sales directly, relying solely on collaboration revenue from BMS[146]. - Collaborative arrangement revenue rose to $29.0 million in Q2 2023, compared to $7.0 million in Q2 2022, an increase of $21.9 million[172]. - Collaborative arrangement revenue increased by $47.9 million to $58.4 million for the six months ended June 30, 2023, primarily due to increased Abecma net sales[183]. Expenses - Research and development expenses for Q2 2023 were $60.0 million, down from $64.6 million in Q2 2022, reflecting a decrease of $4.6 million[175]. - Total research and development expenses for the six months ended June 30, 2023, were $128.2 million, slightly down from $130.4 million in the same period of 2022[161]. - Selling, general and administrative expenses increased to $19.5 million in Q2 2023 from $17.3 million in Q2 2022, an increase of $2.2 million due to higher consulting fees[178]. - Selling, general and administrative expenses decreased to $40.2 million for the six months ended June 30, 2023, from $41.1 million in 2022, reflecting reduced consulting fees[185]. - Total operating expenses for Q2 2023 were $84.0 million, down from $90.5 million in Q2 2022, a decrease of $6.4 million[172]. Cash and Financing - Cash, cash equivalents, and marketable securities as of June 30, 2023, totaled approximately $306.5 million, expected to fund operations for at least the next twelve months[189]. - Net cash used in operating activities was $81.8 million for the six months ended June 30, 2023, compared to $119.9 million for the same period in 2022[191]. - Net cash provided by financing activities was $127.2 million for the six months ended June 30, 2023, primarily from a public offering[196]. - As of June 30, 2023, the company had cash, cash equivalents, and marketable securities totaling $306.5 million, primarily invested in U.S. government agency securities and treasuries, corporate bonds, and commercial paper[207]. Future Outlook - The company anticipates its drug product manufacturing facility in Cambridge, Massachusetts, to be operational in the second half of 2023[144]. - The company plans to fund operations through public or private equity or debt financings, strategic collaborations, or other sources until significant revenues are generated[144]. - The company plans to continue incurring research and development expenses and expects to generate operating losses for the next few years[190]. - Future funding requirements will depend on the development of product candidates and operational needs, with potential increases in costs due to various factors[199]. Market and Economic Factors - Inflation has not materially affected the company's financial position or results of operations during the three and six months ended June 30, 2023, but future inflation could impact clinical trial costs and labor expenses[209]. - The company is currently not exposed to significant foreign currency exchange rate risks but is evaluating the costs and benefits of initiating a hedging program as it expands international operations[208]. - If market interest rates were to increase by 100 basis points, the net fair value of the company's interest-sensitive marketable securities and restricted investments would hypothetically decline by $1.1 million[207]. Clinical Development - The company has advanced multiple preclinical and clinical programs in oncology, focusing on transformative treatments for cancer[142]. - The company has incurred significant expenses related to the development and commercialization of Abecma and expects to continue incurring operating losses for several years[143]. - The change in fair value of contingent consideration as of June 30, 2023, was estimated at $2.3 million, reflecting adjustments based on clinical and commercial milestone probabilities[168].