VRTX - bluebird bio's Flight Through Financial Fog And Fierce Rivals

2024-06-27 15:21:32 ET

Summary

• bluebird bio, Inc. stock plummeted by 73% amid financial struggles and operational hurdles post FDA approval of their gene therapy Lyfgenia.
• The company faces intense competition from CRISPR Therapeutics' Casgevy, which benefits from stronger resources and a faster market rollout.
• Recent financial disclosures are incomplete, obscuring a clear view of bluebird's financial health and prolonging investor uncertainty.
• Maintain a sell recommendation on bluebird bio due to substantial financial and operational risks, with a cautious note on potential high volatility.

Financial Headwinds Challenge Bluebird Bio's Breakthrough in Sickle Cell

bluebird bio, Inc. ( BLUE ) stock has plummeted 73% since my initial look nearly a year ago. Back then, bluebird was awaiting FDA approval for their sickle cell disease gene therapy, lovo-cel. Despite the potential in gene therapy, I recommended a "sell" for bluebird "due to financial risks, the need for long-term efficacy data, and the company's precarious cash position."...

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