GBIO - Generation Bio: Too Late To Pivot?

2024-02-22 11:55:14 ET

Summary

• Generation Bio has lost around 70% of its value in the past two years because of the high risks associated with its non-viral gene therapy.
• The company has pivoted to focus on targeted lipid nanoparticles and immune silent DNA, but these directions may not be synergistic with its partner Moderna.
• The efficacy of Generation Bio's platforms, particularly in gene therapy, remains unclear and unimpressive, in my opinion.

Introduction

Since my last article about Generation Bio (GBIO) 2 years ago, the company has lost ~70% of its value and laid off 40% of its workforce . Back then, I argued that the risks associated with GBIO's main mission, which is non-viral gene therapy, are too high. It is such a difficult field and GBIO does not have the tools needed to succeed. Since then, GBIO started a collaboration with Moderna (MRNA), and leveraged that opportunity to pivot from pure play non-viral gene therapy application such as Hemophilia A, to more of a platform company that focus on 1) extrahepatic targeted lipid nanoparticles (ctLNP) and 2) immune silent DNA or iqDNA....

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