CRSP - Bluebird bio hurt by downgrades after oncology spinoff

Bluebird bio (BLUE -17.7%) is trading lower with double-digit losses for the second straight session as two Wall Street firms lowered their ratings on the biotech that has just announced the spinoff of its oncology business, 2seventy bio (NASDAQ:TSVT). Morgan Stanley expects challenging market conditions for the company’s gene therapy assets, which the analysts Matthew Harrison and Kostas Biliouris, identified as a “robust portfolio” with regulatory clearances expected in 2022/23. The firm has downgraded the stock to Underweight from Equal Weight, with the price target slashed to $11 from $19 per share, implying a downside of ~16.3% to the last close. The company’s clinical-stage candidates include bb1111, potential gene therapy for sickle cell disease (SCD). Citing a rise in competition in the SCD space, the duo projects that the company will have to make significant investments to drive the uptake of bb1111despite its notable clinical impact. Meanwhile, Goldman Sachs expects an update

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Bluebird bio hurt by downgrades after oncology spinoff