In a recent transaction, Victoria Eatwell, the Chief Financial Officer of 2seventy bio, Inc. (NASDAQ:TSVT), sold a small number of shares for tax purposes. The transaction, which occurred on July 2nd, 2024, involved the sale of 12 shares at a weighted average price of $4.0178, totaling approximately $48.
The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units (RSUs). According to a footnote in the SEC filing, these shares were sold in multiple transactions with prices ranging from $4.00 to $4.02. The RSUs in question are set to vest ratably over a two-year period, with the first installment due on July 1, 2025, contingent on Eatwell's continued service with the company.
This financial move by the CFO of 2seventy bio, a pharmaceutical preparations company based in Cambridge, Massachusetts, reflects a common practice among company executives to manage tax implications associated with the vesting of equity awards.
Investors and followers of 2seventy bio will note that the company's shares are directly held by Eatwell, as indicated in the SEC filing. Post-transaction, the CFO still owns a total of 341,332 shares, demonstrating continued investment in the company's future.
The transaction details, including the number of shares sold at each price point, are available upon request from the SEC, the issuer, or the security holder of the issuer, as per the SEC filing.
In other recent news, 2seventy bio has been making significant strategic moves. The company finalized an asset purchase agreement with Novo Nordisk (NYSE:NVO), selling their Hemophilia A program and related technology, a deal that could yield up to $40 million. This aligns with the company's decision to concentrate on its FDA-approved CAR T cell therapy for multiple myeloma, Abecma, in partnership with Bristol Myers (NYSE:BMY) Squibb.
On the earnings front, 2seventy bio reported Abecma's U.S. revenues hit the projected $52 million during its Q1 2024 earnings call and anticipates further revenue growth in the third and fourth quarters. The company also highlighted a strategic shift towards focusing solely on Abecma, coupled with a 14% workforce reduction, aiming to return to growth in the latter half of the year and break even by 2025.
In analyst news, Goldman Sachs (NYSE:GS) downgraded 2seventy bio's stock from Neutral to Sell, expressing concerns over the company's long-term prospects in the competitive landscape for Abecma, its cost structure, and margin profile. The firm anticipates further market share challenges from competitors like Johnson & Johnson and Legend Biotech's Carvykti, Gilead Sciences (NASDAQ:GILD), and Arcellx's anito-cel.
These are recent developments that reflect 2seventy bio's strategic decisions and growth expectations, as well as the analysts' assessments of the competitive landscape and the company's financial health.
InvestingPro Insights
Following the recent financial transaction by Victoria Eatwell, CFO of 2seventy bio, Inc. (NASDAQ:TSVT), investors might be interested in the broader financial health and market performance of the company. According to InvestingPro, 2seventy bio's market capitalization stands at $198.42 million, reflecting the company's size and market value as of the last twelve months leading up to Q1 2024. Despite the challenges, the company maintains a price/book ratio of 0.99, suggesting that the market valuation is close to the company's book value.
However, it's worth noting that the company's shares have experienced significant volatility, with a 1-year price total return of -60.06%, indicating a substantial decrease in share price over the year. This aligns with the InvestingPro Tips that highlight the company's stock price movements as quite volatile. Additionally, the InvestingPro Tips indicate that analysts do not anticipate the company will be profitable this year, which may be a contributing factor to the observed share price volatility.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available that provide insights into the company's financial performance and market expectations. Interested parties can access these tips and leverage the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a more comprehensive understanding of 2seventy bio's investment potential.
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