bluebird bio, Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

bluebird bio, Inc. (Nasdaq: BLUE) has announced a public offering of $150,000,000 of its common stock, with an option for underwriters to purchase an additional $22,500,000. The offering will support commercialization and manufacturing of its three approved gene therapies, ZYNTEGLO, SKYSONA, and LYFGENIA, as well as fund working capital and general corporate purposes.

Financial Analyst

bluebird bio's announcement of a significant public offering to the tune of $150 million, with an additional $22.5 million over-allotment option, is a strategic financial move that warrants investor attention. This influx of capital is earmarked for the commercialization and manufacturing of their approved gene therapies, which could signal a transition from a developmental phase to a more commercial, revenue-generating stage.

The involvement of prominent financial institutions like Goldman Sachs and J.P. Morgan as joint bookrunners suggests a vote of confidence in bluebird's potential. However, investors should weigh the dilutive effect of the new shares against the potential for the company to accelerate its growth. The timing and size of the offering, contingent on market conditions, also speak to the company's capital needs and market's appetite for biotech investments.

Biotechnology Industry Analyst

The capital raise through public offering by bluebird bio is a pivotal moment for the biotechnology sector, especially for companies specializing in gene therapies. The success of ZYNTEGLO, SKYSONA and LYFGENIA can be transformative for patients with rare diseases and the funding is a crucial step for the therapies' market access and production scalability.

Investors should evaluate the company's track record in gaining regulatory approvals and its manufacturing capabilities. While funding is a positive sign, the biotech industry is fraught with risks, from clinical trials to market adoption. The long-term benefits hinge on the therapies' commercial success and the ability to navigate the complex regulatory environment.

Investment Strategist

The timing and structure of bluebird bio's offering provide insights into the company's strategy and market sentiment. The 30-day option for underwriters to purchase additional shares serves as a buffer to capitalize on favorable market reactions post-announcement. Investors should consider the broader market trends in biotech funding and the potential impact of macroeconomic factors.

Given the volatile nature of biotech stocks, diversification within an investment portfolio can mitigate risks associated with such offerings. Long-term effects will largely depend on the company's execution post-capital raise and the market's valuation of its gene therapy advancements relative to competitors.

SOMERVILLE, Mass.--(BUSINESS WIRE)-- bluebird bio, Inc. (Nasdaq: BLUE) (“bluebird”) today announced that it has commenced an underwritten public offering of $150,000,000 of shares of its common stock. bluebird also intends to grant the underwriters a 30-day option to purchase up to an additional $22,500,000 of shares of its common stock to be sold in the offering. The offering, actual size and terms are subject to market conditions, and there can be no assurance as to whether or when the offering may be completed. All shares in the offering are to be sold by bluebird.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as joint book running managers for the offering. Raymond James & Associates, Inc. is acting as co-manager for the offering.

bluebird intends to use the net proceeds of the offering (i) to support commercialization and manufacturing for its three approved gene therapies, ZYNTEGLO, SKYSONA and LYFGENIA; and (ii) to fund working capital and other general corporate purposes.

The offering is being made pursuant to an effective shelf registration statement on Form S-3, including a prospectus, that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 9, 2023 and was declared effective by the SEC on May 19, 2023. A preliminary prospectus supplement describing the terms of the offering will be filed with the SEC and will form a part of the effective registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the public offering may be obtained, when available, by contacting Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526 or by email at prospectus-ny@ny.email.gs.com; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204 or by email at prospectus-eq_fi@jpmorganchase.com . Before you invest, you should read the preliminary prospectus supplement and accompanying prospectus and the other documents that bluebird has filed with the SEC for more complete information about bluebird and the proposed offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements in this press release include, without limitation, statements regarding the consummation of the offering, the terms of the offering and the anticipated use of the net proceeds from the offering. All statements that are not statements of historical facts are, or may be deemed to be, forward-looking statements. Such forward-looking statements are based on historical performance and current expectations and projections about our future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, that are difficult to predict, may be beyond our control and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. No forward-looking statement can be guaranteed. Forward-looking statements in this press release should be evaluated together with the many risks and uncertainties that affect bluebird bio’s business, particularly those identified in the risk factors discussion in bluebird bio’s Annual Report on Form 10-K, as updated by our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. These risks include, but are not limited to: delays and challenges in our commercialization and manufacturing of our products; we may encounter additional delays in the development of our programs, including the imposition of new clinical holds, that may impact our ability to meet our expected timelines and increase our costs; the internal and external costs required for our ongoing and planned activities, and the resulting impact on expense and use of cash, has been, and may in the future be, higher than expected which has caused us, and may in the future cause us to use cash more quickly than we expect or change or curtail some of our plans or both; substantial doubt exists regarding our ability to continue as a going concern; our expectations as to expenses, cash usage and cash needs may prove not to be correct for other reasons such as changes in plans or actual events being different than our assumptions; the risk that the efficacy and safety results from our prior and ongoing clinical trials will not continue or be seen in additional patients treated with our product candidates; the risk of insertional oncogenic or other reportable events associated with lentiviral vector, drug product, or myeloablation, including the risk of hematologic malignancy; the risk that any one or more of our products or product candidates, will not be successfully developed or commercialized. The forward-looking statements included in this press release are made only as of the date of this press release and except as otherwise required by applicable law, bluebird bio undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231218251755/en/

Investors & Media



Investors:

Courtney O’Leary, 978-621-7347

coleary@bluebirdbio.com



Media:

Jess Rowlands, 857-299-6103

Jess.rowlands@bluebirdbio.com

Source: bluebird bio, Inc.

FAQ

What is bluebird bio, Inc.'s ticker symbol?

The ticker symbol for bluebird bio, Inc. is BLUE on the Nasdaq.

What is the purpose of the public offering announced by bluebird bio, Inc.?

The purpose of the public offering is to raise funds to support the commercialization and manufacturing of its three approved gene therapies, ZYNTEGLO, SKYSONA, and LYFGENIA, as well as to fund working capital and general corporate purposes.

How much is bluebird bio, Inc. offering in its public offering?

bluebird bio, Inc. is offering $150,000,000 of its common stock, with an option for underwriters to purchase an additional $22,500,000.

What are the underwriters for bluebird bio, Inc.'s public offering?

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as joint book running managers for the offering, with Raymond James & Associates, Inc. as the co-manager.

How can interested investors obtain more information about bluebird bio, Inc.'s public offering?

Interested investors can obtain more information about the public offering by contacting Goldman Sachs & Co. LLC or J.P. Morgan Securities LLC for copies of the preliminary prospectus supplement and accompanying prospectus.