MTEM - Bluebird Bio Clovis Oncology Chimerix drop as Truist flags liquidity concerns

Bluebird Bio (BLUE), Clovis Oncology (NASDAQ:CLVS) and Chimerix (CMRX) are trading lower in the morning hours Thursday after Truist said that the three biotechs are at the risk of running out of cash within the next six months. The analysis of 118 companies developing cancer medications excludes the changes to future cash consumptions or revenues. While Bluebird had three months of cash in hand at the end of May, Clovis (CLVS) and Chimerix (CMRX) had four months and five months of cash remaining, respectively, according to analysts led by Asthika Goonewardene. Investor concerns over the cash burn “are likely a key element helping drive part of the YTD valuation rout in biotech — in addition to the poor macro and regulatory environment,” Bloomberg reported, quoting the analysts. Companies have been looking for alternative financing measures like PIPES and collaborations. Truist has also listed 21 companies with less than 12 months

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Bluebird Bio, Clovis Oncology Chimerix drop as Truist flags liquidity concerns