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bluebird bio (BLUE)
NASDAQ:BLUE
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Bluebird Bio
(NASDAQ:BLUE)
36Underperform
Positive Factors
Privatization
The announced privatization of the company is expected to be completed within the first half of 2025.
Sales Growth
The company's portfolio is expected to reach over $600 million in annual sales, triggering a potential cash value right.
Treatment Reach
BLUE has activated more than 70 QTCs for Zynteglo and Lyfgenia, indicating a broader treatment reach.
Negative Factors
Financial Performance
3Q24 revenue of $10.6mm was below the expected $21.1mm and continues to decline sequentially QoQ from $16.1mm in 2Q24 and $18.6mm in 1Q24.
Market Confidence
The company has been moved to a Neutral rating from Underweight, indicating less confidence in outperforming the market.
Profitability Challenges
Bluebird was reaching the end of its cash runway, unlikely to achieve near-term profitability from its ongoing commercial launches, and at risk of defaulting on its loan covenants.
Bluebird Bio (BLUE) vs. S&P 500 (SPY)
Market Cap
$47.87M
Dividend YieldN/A
Average Volume (3M)668.85K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth184.12%
EPS Growth31.92%
CountryUS
Employees248
SectorHealthcare
Sector Strength76
IndustryBiotechnology
Share Statistics
EPS (TTM)-24.86
Shares Outstanding9,790,070
10 Day Avg. Volume850,239
30 Day Avg. Volume668,852
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)-0.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside31.31% Upside
Rating ConsensusHold
Number of Analyst Covering5
Bluebird Bio Business Overview & Revenue Model
Company Descriptionbluebird bio, Inc., a biotechnology company, researches, develops, and commercializes transformative gene therapies for severe genetic diseases. Its product candidates for severe genetic diseases include betibeglogene autotemcel for the treatment of transfusion-dependent ß-thalassemia; lovotibeglogene autotemcel for the treatment of sickle cell disease (SCD); and elivaldogene autotemcel to treat cerebral adrenoleukodystrophy. The company's clinical study program includes HGB-205, HGB-206, and HGB-210 to evaluate the safety and efficacy of lovo-cel in the treatment of patients with SCD; and HGB-204, HGB-205, HGB-207, and HGB-212 to evaluate the safety and efficacy of beti-cel in the treatment of patients with ß-thalassemia. It has strategic collaboration and license agreements with Orchard Therapeutics Limited, Forty Seven, Inc., and Magenta Therapeutics, Inc. The company was formerly known as Genetix Pharmaceuticals, Inc., and changed its name to bluebird bio, Inc. in September 2010. bluebird bio, Inc. was incorporated in 1992 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneyBluebird Bio makes money through the development and commercialization of its gene therapy products. Revenue streams primarily include sales from its approved gene therapies and collaborative agreements with other biotechnology and pharmaceutical companies. The company generates income by selling its therapies to healthcare providers and through milestone payments and royalties from partnerships with other organizations focused on developing and commercializing gene therapy solutions. Significant factors contributing to its earnings include regulatory approvals, successful clinical trial outcomes, and the establishment of strategic partnerships to expand the reach and application of its therapies.
Bluebird Bio Financial Statement Overview
Summary
Bluebird Bio is facing substantial financial hurdles across all major financial statements. The income statement shows consistent losses, the balance sheet indicates a precarious financial position with negative equity, and cash flow challenges persist. These factors combined highlight significant risks and the need for strategic financial restructuring.Income Statement
Bluebird Bio's income statement reveals significant challenges, particularly with its profitability. The company has a persistently negative gross profit margin, net profit margin, and EBIT margin over the years, indicating an inability to generate profit from operations. Despite recent revenue growth, the net income remains deeply negative, reflecting ongoing losses.25
Negative
Balance Sheet
The balance sheet shows a concerning financial position with negative stockholders' equity, indicating liabilities exceed assets, a significant risk factor. The debt-to-equity ratio is not meaningful due to negative equity but highlights financial instability. The equity ratio is negative, suggesting high leverage and potential solvency issues.30
Negative
Cash Flow
The cash flow statement indicates persistent negative operating and free cash flows, suggesting that the company is not generating enough cash to cover its expenses. While financing activities have provided some relief, the negative free cash flow to net income ratio reflects ongoing financial challenges.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 53.12M | 83.81M | 29.50M | 3.60M | 3.66M | 250.73M | Gross Profit |
| -23.10M | -5.57M | -4.03M | -6.48M | -35.20M | 245.34M | EBIT |
| -316.68M | -270.46M | -244.26M | -287.09M | -590.91M | -629.51M | EBITDA |
| -128.23M | -270.46M | -167.16M | -215.56M | -556.93M | -553.63M | Net Income Common Stockholders |
| -300.52M | -240.72M | -211.91M | -266.58M | -562.64M | -618.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 131.84M | 62.30M | 221.75M | 181.74M | 396.62M | 1.27B | Total Assets |
| 137.46M | 460.23M | 619.16M | 554.90M | 593.79M | 1.78B | Total Debt |
| 0.00 | 283.36M | 330.33M | 281.39M | 89.58M | 193.02M | Net Debt |
| -131.84M | 221.06M | 108.57M | 168.38M | -71.58M | -124.68M | Total Liabilities |
| 78.96M | 491.77M | 424.62M | 358.56M | 219.52M | 426.20M | Stockholders Equity |
| 58.50M | -31.53M | 194.54M | 196.34M | 374.28M | 1.36B |
| Cash Flow | Free Cash Flow | ||||
| -231.02M | -262.62M | -244.10M | -366.16M | -658.64M | -499.34M | Operating Cash Flow |
| -223.69M | -260.02M | -235.05M | -352.95M | -635.64M | -470.35M | Investing Cash Flow |
| 5.22M | 3.90M | 154.95M | 250.45M | 562.56M | -84.34M | Financing Cash Flow |
| 118.76M | 87.47M | 196.25M | 54.25M | -93.95M | 546.72M |
Bluebird Bio Technical Analysis
Neutral
4.95
Price Trends
5.24
Negative
6.68
Negative
10.77
Negative
Market Momentum
-0.21
Negative
63.49
Neutral
71.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLUE, the sentiment is Neutral. The current price of 4.95 is above the 20-day moving average (MA) of 4.17, below the 50-day MA of 5.24, and below the 200-day MA of 10.77, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLUE.
Bluebird Bio Risk Analysis
Bluebird Bio disclosed 66 risk factors in its most recent earnings report. Bluebird Bio reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bluebird Bio Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $122.02B | ― | -3.15% | ― | 11.64% | -114.72% | |
48 Neutral | $6.36B | 1.09 | -49.92% | 2.63% | 17.17% | 0.95% | |
46 Neutral | $2.81B | ― | -19.20% | ― | -89.95% | -123.71% | |
42 Neutral | $139.84M | ― | -187.83% | ― | -67.20% | 64.66% | |
41 Neutral | $686.32M | ― | -54.00% | ― | 59.55% | 3.09% | |
39 Underperform | $85.47M | ― | -98.10% | ― | -58.64% | -40.05% | |
36 Underperform | $47.87M | ― | -295.35% | ― | 184.12% | 31.92% |
* Healthcare Sector Average
Performance Comparison
BLUE
Bluebird Bio
4.95
-18.25
-78.66%
SGMO
Sangamo Biosciences
0.66
0.10
17.86%
VRTX
Vertex Pharmaceuticals
474.62
70.40
17.42%
EDIT
Editas Medicine
1.03
-5.69
-84.67%
NTLA
Intellia Therapeutics
6.63
-18.67
-73.79%
CRSP
Crispr Therapeutics AG
32.65
-31.44
-49.06%
Bluebird Bio Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: 22.22% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong patient start growth, successful cost reduction efforts, and promising reimbursement pathways. However, these positives were countered by a decrease in quarterly revenue, cash resource challenges, and pending shareholder approvals, creating a balanced outlook.Highlights
Significant Increase in Patient Starts
Patient starts have more than doubled from 27 to 57 since Q2 2024, with 74 patient starts completed or scheduled for 2024 and 30 more scheduled for 2025.
Successful Reduction in Cash Operating Expenses
Implemented steps to reduce cash operating expenses by 20% in Q3 2025.
Strong Manufacturing Capacity and Future Expansion Plans
Current manufacturing capacity is adequate to meet projections with plans to double LYFGENIA capacity in 2026.
Encouraging Reimbursement and Access Pathways
Over half of U.S. states have affirmed coverage for LYFGENIA, and no ultimate denials have been recorded across Medicaid and commercial payers.
Lowlights
Decrease in Quarterly Revenue
Q3 2024 revenue was $10.6 million, down from $16.1 million in Q2, attributed to variations in manufacturing timelines.
Cash Resource Challenges
Existing cash and cash equivalents are expected to fund operations only into Q1 2025, necessitating additional financing.
Pending Shareholder Approval for Reverse Stock Split
Adjourned shareholder meeting to obtain approval for a reverse stock split to comply with NASDAQ requirements and increase share authorization.
Company Guidance
During bluebird bio's third-quarter 2024 earnings call, the company provided optimistic guidance, highlighting a doubling of patient starts from 27 to 57 since the previous quarter and a total of 74 starts for the year. They emphasized plans to reduce cash operating expenses by 20% starting in Q3 2025, paving the way for financial stability and cash flow breakeven in the second half of the year. The company reported $10.6 million in Q3 revenue, down from $16.1 million in Q2, but projected a rebound to at least $25 million in Q4. Manufacturing capacity is deemed sufficient to meet the goal of 40 drug product deliveries per quarter by late 2025, supported by a robust Qualified Treatment Center (QTC) network. As of September 30, 2024, bluebird bio held $118.7 million in cash, including $48 million in restricted cash, and is focusing on extending its runway through additional financing and cost-saving initiatives.Bluebird Bio Corporate Events
Business Operations and Strategy
Bluebird Bio Ends Sublease Agreement with Meta and Aventis
Neutral
Feb 20, 2025
On February 13, 2025, Bluebird Bio and its partners, Aventis Inc. and Meta Platforms, agreed to terminate Bluebird Bio’s sublease and Meta’s sub-sublease of office space in Cambridge, Massachusetts. Following this termination, Meta will sublease the space directly from Aventis, while Bluebird Bio, which does not occupy the space, has no further involvement.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.