Gene therapy biotech shares
The stock has tumbled in recent months, with the stock falling 46.4% in the past year as the S&P 500 Health Care Sector Index climbed 14.2%.
Now, the company is trying something completely different in an attempt to stop the downward spiral. In a move announced on Monday morning, Bluebird (ticker: BLUE) said it planned to split into two public companies by the end of the year. One will focus on rare diseases and the other will work on the treatment of cancer.
Company CEO Nick Leslie said in a statement, “Following the strategic review, it is clear to us that the two businesses are best served by independent leadership and teams to meet different strategic and operational objectives. “
Bluebird shares were up 5.1% in prepaid trading.
According to the Wall Street Journal, treatment has not yet begun due to the Kovid-19 epidemic, although bluebird’s gene therapy Zynteglo, which treats the blood disorder beta-thalassemia, has been approved in Europe. Gene therapy, one of the first in the world to receive regulatory approval, does not yet have approval from the US Food and Drug Administration.
For a few days news came of an uncertainty for the gene-therapy field.
(SRPT) on Friday fell 51.3% in the news that Duchenne had failed a test to improve muscle strength in her gene therapy patients for muscular dystrophy. Data from and
(BMRN) on Sunday night about its phase 3 trial of the gene therapy valoctocogen Roxaparvovec in patients with severe haemophilia A, while positive, failed to raise enthusiasm among investors. Shares were down 0.1% in early trading on Monday.
After decades of investment, questions are arising about whether investors are running away with patience for gene therapy.
In its statement, Bluebird said the new serious genetic disease company would focus on therapy for the blood diseases beta thalassemia and sickle cell disease, and a rare disease known as cerebral adrenoalcoidosis. The company said the company would work on expanding access and reimbursement for its gene therapy Zynteglo in Europe.
The new cancer company said it would focus on commercializing its car T cell therapy Ide-CL, on which it is collaborating with Bristol Myers Squibb (BMY). The product is under FDA review. It said its pipeline would focus on non-Hodgkin lymphoma, acute myeloid leukemia and other cancers.
Despite its stumbling block in recent months, it remains popular on Stock Street: 16 of the 24 analysts covering the bluebird tracked by FactSet bought it or overweight it, and eight held it.
The company held a conference call at 8 am to discuss Eastern’s announcement.
Write Josh Nathan-Kazis at [email protected]