RCKT - Bluebird bio's setback hurts AVROBIO and others focused on lentiviral gene therapies

bluebird bio (BLUE -25.0%) has lost nearly a quarter of its market cap after the company announced that the FDA placed a clinical hold on studies of elivaldogene autotemcel designed to target cerebral adrenoleukodystrophy (CALD). Elivaldogene autotemcel also known as (eli-cel, Lenti-D) is a gene therapy candidate based on lentiviral vectors. In reaction, rivals of bluebird bio such as AVROBIO (AVRO -12.7%), Rocket Pharmaceuticals (RCKT -2.2%) and Mustang Bio (MBIO -2.2%), which also focus on similar technology for their gene therapy candidates, are trading lower today. The setback draws parallels between a similar event in February when bluebird bio (NASDAQ:BLUE) was forced to suspend two clinical trials in sickle cell disease for the gene therapy candidate, LentiGlobin after a serious adverse reaction of acute myeloid leukemia. However, in March, the company said that the condition was unlikely caused by the BB305 lentiviral vector used in the production of LentiGlobin.

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Bluebird bio’s setback hurts AVROBIO and others focused on lentiviral gene therapies