On Thursday, Bluebird Bio Inc. BLUE reported a third-quarter EPS lack of 31 cents, in comparison with a lack of 80 cents a yr in the past, beating the consensus lack of 36 cents.
The gene remedy firm reported gross sales of $10.6 million, down from $12.39 million, lacking the consensus of $18.1 million.
The corporate’s money, money equivalents, and restricted money steadiness have been roughly $118.7 million, which is predicted to supply a money runway into the primary quarter of 2025.
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The corporate anticipates quarterly money circulation break-even within the second half of 2025, assuming it scales to roughly 40 drug product deliveries per quarter and obtains extra money sources to increase its runway.
JP Morgan downgraded Bluebird after the third-quarter outcomes. The analyst notes a decreased money runway to “into 1Q25” from “into 2Q25.”
JP Morgan highlights that Bluebird did obtain the milestone of its first Lyfgenia infusion in the course of the quarter (and income recognition) and continues to extend the tempo of affected person begins (cell collections) throughout its portfolio however is doing so in opposition to a backdrop of continued unfavourable gross margins.
- 57 affected person begins accomplished up to now in 2024 (35 Zynteglo, 17 Lyfgenia, 5 Skysona).
- Seventeen extra begins are scheduled by means of the rest of 2024.
“Altogether presenting few avenues to emerge from remaining a going concern,” the analyst says. JP Morgan has downgraded from Impartial to Underweight.
The analyst writes that the proxy vote didn’t collect sufficient help to approve a reverse inventory cut up and enhance the variety of shares out there for issuance. This consequence successfully eliminates fairness financing as an choice for elevating capital.
In September, Bluebird bio carried out a restructuring to optimize its price construction and allow quarterly money circulation break-even within the second half of 2025.
Worth Motion: BLUE inventory is down 11.2% at $0.32 finally test Friday.
Photograph by Floor Image on Shutterstock
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