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bluebird bio (BLUE) Stock Gains 25.6% in a Month: Here's How

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Shares of bluebird bio (BLUE - Free Report) have increased by 25.6% in a month compared with the industry’s growth of 0.2%.

Last month, bluebird posted better-than-expected results in the third quarter. It delivered a loss of 66 cents per share in the third quarter, narrower than the Zacks Consensus Estimate of a loss of 69 cents per share. The company delivered a loss of $92 per share in the year-ago quarter (excluding restructuring expenses). 

Zacks Investment Research
Image Source: Zacks Investment Research

The company reported revenues of $12.4 million in the third quarter, up from $0.1 million in the year-ago quarter, beating the Zacks Consensus Estimate of $11 million. The increase of $5.4 million was primarily due to product revenues from Skysona (elivaldogene autotemcel) and Zynteglo (betibeglogene autotemcel).

We remind investors that the FDA approved Zynteglo for the treatment of beta-thalassemia in adult and pediatric patients requiring regular red blood cell transfusions on Aug 17, 2022, and Skysona for treating early, active cerebral adrenoleukodystrophy on Sept 16, 2022.

bluebird has made significant progress in the launch of Zynteglo with 16 patient starts (cell collections) for individuals suffering from beta-thalassemia.
The first commercial infusion for Syksona was completed in March 2023. Cell collection has been completed for six patients to be treated with Skysona. bluebird continues to anticipate 5-10 patient starts for Skysona this year.


bluebird bio, Inc. Price, Consensus and EPS Surprise

bluebird bio, Inc. Price, Consensus and EPS Surprise

bluebird bio, Inc. price-consensus-eps-surprise-chart | bluebird bio, Inc. Quote

In September, bluebird announced an amendment to its agreement with Lonza, which manufactures drug products for Zyneteglo and Skysona. The amended agreement enables increased manufacturing capacity for both therapies.

Meanwhile, bluebird has an important event coming up. Its third gene therapy, lovotibeglogene autotemcel (lovo-cel), is under review in the United States. The target action date is Dec 20, 2023.

In August, bluebird bio announced that the FDA communicated that an advisory committee meeting would not be scheduled for lovo-cel.

If lovo-cel gets the FDA’s approval, it will be a significant boost for the company.

Revenues are expected to gain traction in 2024 and should fuel BLUE’s growth trajectory.

As of Sep 30, 2023, the company had cash and cash equivalents, marketable securities and a restricted cash balance of approximately $227 million, down from $291 million at the end of the previous quarter.

Based on current operating plans, bluebird expects its cash, cash equivalents and marketable securities, including anticipated cash flows from operations and excluding $53 million of restricted cash, to be sufficient for its planned operating expenses and capital expenditure requirements into the second quarter of 2024.

Zacks Rank and Other Stocks to Consider

bluebird currently has a Zacks Rank #2 (Buy).

A couple of other top-ranked stocks in the biotech sector are Entrada Therapeutics (TRDA - Free Report) , Dynavax Technologies (DVAX - Free Report) ,  and Acadia Pharmaceuticals (ACAD - Free Report) . While TRDA sports a Zacks Rank #1 (Strong Buy), DVAX and ACAD, each carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Entrada’s loss per share estimates for 2023 have narrowed from $2.07 to 9 cents in the past 30 days. During the same period, loss estimates for 2024 narrowed to $2.04 from $2.35.

Dynavax’s loss per share estimates for 2023 have narrowed from 23 cents to 12 cents in the past 30 days. During the same period, earnings estimates for 2024 rose from 8 cents to 18 cents. Shares of DVAX have gained 28.7% year to date.

Loss estimates for Acadia have narrowed to 33 cents from 41 cents for 2023 and earnings estimates for 2024 are currently pinned at 94 cents per share. ACADIA shares have gained 39.9% year to date.

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