On Thursday, 2seventy Bio Inc. (NASDAQ:TSVT) completed the asset purchase agreement with Novo Nordisk A/S (NYSE:NVO).

Under the terms, Novo Nordisk has acquired the Hemophilia A program and rights to 2seventy's in vivo gene editing technology outside of oncology and gene editing for autologous or allogeneic cell therapies of immune cells for autoimmune disease.

The 2seventy bio team currently involved in the program will join Novo Nordisk and continue to advance the technology.

Related: FDA Approves Bristol-Myers/2seventy Bio's Abecma For Earlier Use In Pretreated Blood Cancer Patients With Updated Boxed Warning On Secondary Cancer.

The program is based on the original research agreement, established in 2019, which focused on a gene editing therapy for Hemophilia A.

2seventy bio will focus exclusively on the commercialization and continued development of Abecma (idecabtagene vicleucel), its BCMA-targeted CAR T cell therapy for multiple myeloma, in collaboration with Bristol Myers Squibb & Co (NYSE:BMY).

"We are pleased to announce the completion of this APA with Novo Nordisk as we believe it will provide the appropriate resources for both the team and the science behind this important program," said Chip Baird, CEO, 2seventy bio.

Under the terms of the agreement, 2seventy will potentially receive payments of up to $40 million.

2seventy will transfer the Hemophilia A program to Novo Nordisk, and the existing collaboration agreement will be terminated.

Additionally, the divestiture will include the transfer of 2seventy Bio's megaTAL technology and a license to the underlying intellectual property.

Price Action: TSVT shares are up 4.58% at $3.77 at last check Thursday.