Bluebird Bio has agreed to sell itself to private equity firms Carlyle and SK Capital for approximately $30 million, signaling the end of its once-promising journey from one of the most highly anticipated biotech companies to a firm on the brink of running out of funds. Shareholders will receive $3 per share, with the possibility of an additional $6.84 per share if Bluebird’s gene therapies achieve $600 million in sales in any 12-month period by 2027. Following the announcement, Bluebird’s stock fell by 40%, closing at $4.22 on Friday, well below its Thursday value of $7.04.
For over three decades, Bluebird Bio was at the forefront of developing groundbreaking one-time gene therapies aimed at curing genetic diseases. At its peak, the company’s market capitalization reached nearly $9 billion, with investors hopeful about the future of its gene therapies. However, the company’s financial standing took a significant hit following a series of scientific setbacks. In 2018, a report that a patient who received Bluebird’s gene therapy for sickle-cell disease developed cancer raised questions about the safety of its DNA-altering treatments. Although Bluebird stated that its therapy was not responsible for the cancer, the incident sparked a wave of concerns about the safety of its therapies.
The company also faced backlash from European regulators after pricing its gene therapy for beta thalassemia, Zynteglo, at $1.8 million per patient. In 2021, Bluebird withdrew the treatment from the European market, despite it being approved just two years earlier, and refocused its efforts on the U.S. market. Despite the approval of Zynteglo for beta thalassemia, Lyfgenia for sickle-cell disease, and Skysona for a rare brain disease, Bluebird’s financial troubles continued to deepen. The spin-off of its cancer treatments into 2Seventy Bio further drained the company’s resources, eliminating a critical source of revenue.
As of the latest update in November, Bluebird announced that its remaining cash reserves would only be sufficient to fund operations until the first quarter of 2025. The company’s sale is a far cry from its former valuation and highlights the challenges of turning gene therapy into a viable business. Although Bluebird’s therapies have had transformative effects on patients, they have not been enough to save the company from financial collapse.
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