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Bluebird Bio Extends Rally as Analysts Reflect Positively on Zynteglo Approval

2022.08.18 17:02

Bluebird Bio Extends Rally as Analysts Reflect Positively on Zynteglo Approval
bluebird bio (BLUE) Extend Rally as Analysts Reflect Positively on Zynteglo Approval

By Senad Karaahmetovic

Shares of Bluebird Bio (NASDAQ:BLUE) are up about 10% today after the United States Food and Drug Administration (FDA) yesterday cleared the company’s Zynteglo therapy.

Bluebird shares initially jumped over 20% yesterday before paring gains to close 3% higher.

Analysts see the approval as a clear tailwind for BLUE shares, which are down about 35% YTD. Here’s what three BLUE analysts had to say about the approval.

“This is a clear positive for BLUE and the broader field of gene therapy, but we remain SP, Speculative Risk on the stock given a relatively small commercial opportunity (recall most patients are in Europe, where BLUE discontinued the commercial effort post payors’ pushback – link) and awaiting further clarity on SCD.” – RBC analyst.

“We view this approval as a positive precedent for the company’s other gene therapy products, especially lovo-cel for sickle cell disease (SCD), which is the most promising potential revenue driver for the company.” – Raymond James analyst.

“FDA approval, while expected, is a positive for BLUE, allowing mgt. to extend its cash runway by selling the priority review voucher (estimates ~$100-125M). Near-term progress on the SCD filing, removal of the going concern language and initial TDT uptake re key drivers of BLUE.” – Morgan Stanley analyst.

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