Gene Therapy Uptick Boosts Bluebird Stock

Bluebird bio’s gene therapies seem to be on the rise after a challenging period. In its first-quarter earnings report, the biotech company revealed that 15 new patients have begun treatment with one of its high-cost therapies this year. Furthermore, bluebird anticipates over 100 patient starts in total for 2024. This positive news sent bluebird’s stock up by 15%. Currently, the company has a market valuation of about $200 million, a significant drop from its peak market cap in 2018 when it had $1.6 billion in cash reserves. The company has faced numerous challenges, including safety issues, submission delays, and difficulties in rolling out its gene therapy portfolio. However, the recent developments suggest a potential turnaround.

In December, bluebird bio received FDA approval for Lyfgenia (lovotibeglogene autotemcel), a one-time treatment for sickle-cell disease, priced at $3.1 million. Since then, the company has secured multiple outcomes-based agreements with commercial payers. Additionally, the US Centers for Medicare and Medicaid Services (CMS) has proposed higher reimbursement rates for the therapy. This year, one patient has started on Lyfgenia.

Bluebird’s gene therapy for beta-thalassemia, Zynteglo (betibeglogene autotemcel), which costs $2.8 million, has seen 11 new patient starts this year. Another therapy, Skysona (elivaldogene autotemcel), priced at $3 million for treating cerebral adrenoleukodystrophy, has three new patient starts. Approved in 2022, both Zynteglo and Skysona are considered moderately priced for gene replacement therapies, especially when compared to Orchard Therapeutics' Lenmeldy (atidarsagene autotemcel), which carries a price tag of $4.25 million.

Bluebird bio reported net revenues of $18.6 million for the first quarter, a significant increase compared to $2.4 million in the same period last year. Although the company has not provided full-year revenue guidance, it expects between 85 to 105 new patient starts across its three gene therapies.

The recent surge in patient starts and the corresponding increase in revenue indicate that bluebird bio is finally gaining traction. With FDA approvals and more favorable reimbursement rates, the company seems poised for a more stable future. If the trend continues, bluebird bio could potentially overcome its past hurdles and establish itself as a key player in the gene therapy market.